Adam Bertram comments: “The incoming regulation from Ofgem marks a major shift for the heat network sector. The new rules go beyond compliance, embedding resilience and long‑term stability into heat network operation, to deliver improved outcomes for consumers. These changes will also create both challenges and opportunities for housing developers, with Ofgem intending to work collaboratively with suppliers and operators during the first year of regulation.

“The new regulatory framework should help open up the market by ensuring that both new entrants and established providers meet clear authorisation standards. This will support more sustainable housing development and help support the UK’s decarbonisation strategy. But, for SME developers already facing stalled projects, planning bottlenecks and labour shortages, it will mean more red tape and upfront costs within their development pipelines, which could lead to a slowdown in delivery.”

He added: “However, developers have reasons to be cautiously optimistic. Grants and funding are available to support the transition to heat networks, alleviating some financial pressure. Acting early is also essential, not only to meet regulatory obligations, but to demonstrate environmental responsibility and commitment to decarbonisation. This will help developers to build consumer trust and investor confidence in a rapidly growing market.”