Ready for Ofgem? Heat Network Compliance in high-rises

The UK’s transition to net-zero carbon emissions has introduced significant regulatory changes within the energy sector, and the heat network industry is no exception. With the Energy Act (2023) setting the stage for OFGEM to regulate heat networks, all heat network providers must prepare for compliance with new rules. Starting on 26th January 2026, OFGEM will officially assume its regulatory role, followed by a 12-month transition period.

OFGEM’s regulatory role and the impact on high-rise residential developments The OFGEM heat network regulation will focus on consumer protection, fair pricing, reliability, and technical performance standards. These standards will include efficiency requirements, metering obligations, and authorisation for heat network providers to operate. High-rise residential buildings, which house a large number of homes in a compact space, pose unique challenges when it comes to heating and cooling systems. Centralised heating systems, like Community Heat Hubs (CHHs) and Networked Ground Source Heat Pumps (NGSHPs), offer efficient, low-carbon solutions that address these challenges while aligning with OFGEM’s standards.

For all heat networks to be operational, providers must be authorised by OFGEM. This means that heat networks in high-rise buildings will need to adhere to standards that ensure consumer protections, technical performance, and energy efficiency.

Leading the Way in Heat Network Regulation

As Power On expands its presence in the high-rise residential market, we are proactively preparing for OFGEM’s regulation by ensuring that its Networked Ground Source Heat Pumps (NGSHPs) and Community Heat Hubs (CHHs) meet all required technical and operational standards. These systems are designed to provide highly efficient, low-carbon heating solutions, reducing the reliance on gas boilers and promoting sustainability.

Heat network systems should be built to:

• Ensure transparency and fair pricing: By offering clearly defined pricing models and a price promise, guaranteeing that the cost of heating solutions will be comparable or lower than traditional, less sustainable options.
• Incorporate smart metering: All systems should be equipped with advanced metering technologies to monitor energy use, ensuring accurate billing and providing real-time insights for consumers to optimise their energy consumption.
• Promote scalability and reliability: Modular design of Community Heat Hubs allows for scalability, making them suitable for a wide range of high-rise developments, from smaller buildings to large multi-unit residential blocks.

Any proactive compliance strategy must be grounded in a commitment to OFGEM’s consumer protection measures and ensure that solutions are in line with the Future Homes Standard and Part L of the Building Regulations.

Solutions for High-Rise Residential Developments

In high-rise residential buildings, where individual heating solutions may not be feasible due to space constraints and high energy demand, Community Heat Hubs offer an ideal solution. These centralised systems efficiently distribute low-carbon heat to multiple units from a single, scalable source. The ability to integrate these systems with renewable energy sources such as solar power enhances the sustainability of the development, ensuring long-term resilience against future regulatory changes.

The NGSHP systems, meanwhile, utilise the earth’s natural thermal energy to provide efficient, lowcarbon heating for new and existing developments. These systems significantly reduce the carbon footprint of high-rise buildings, making them an attractive option for developers seeking to meet the requirements of the Future Homes Standard while adhering to OFGEM’s efficiency criteria. Both solutions are fully compliant with OFGEM regulations, offering developers a pathway to meeting net-zero targets while reducing the regulatory burden on their projects.

Supporting Developers and M&E Consultants in the Transition to Electrification

Developers require a complete solution that not only addresses the regulatory requirements of OFGEM but also integrates seamlessly with the electrification of high-rise residential housing. With heat network authorisation becoming mandatory, developers can benefit from pre-authorised solutions, which have been designed to meet all regulatory criteria well in advance of the 2026 deadline.

Developers also face challenges when connecting to the upstream electricity grid. By using Community Heat Hubs and NGSHPs, developers can reduce the impact of high energy loads, which is often a challenge for high-rise developments with numerous individual systems. This ensures that the heat network operates efficiently without overwhelming the local grid, supporting sustainability at both the building and community levels.

Meeting the Needs of the Future Homes Standard and Part L Regulations

The shift towards electrification and low-carbon heating solutions is driving changes in building standards, particularly in the residential sector. The Future Homes Standard (set to come into effect in 2025) requires that new homes meet rigorous energy efficiency and carbon reduction targets. By
adopting NGSHPs and CHHs, developers can ensure their high-rise residential projects are compliant with these standards, significantly reducing their carbon emissions and energy consumption. Moreover, with Part L of the Building Regulations setting energy performance targets for new buildings, heating solutions provide a pathway to compliance with the highest standards for energy efficiency and environmental performance.

Commitment to Future-Proof, Compliant, and Sustainable Heat Networks

As OFGEM’s heat network regulations begin to take effect, Power On stands ready to lead the way in ensuring high-rise residential developments are not only compliant with the new regulatory framework but also positioned for long-term sustainability. NGSHPs, Community Heat Hubs, and integrated smart thermostat solutions provide a holistic approach to heating that ensures developers meet the highest standards of efficiency, reliability, and consumer protection.

Prioritising compliance with OFGEM, Future Homes Standard, and Part L, helps developers and consultants navigate the evolving regulatory landscape while contributing to the UK’s ambitious net zero goals. With innovative, low-carbon heating solutions, the industry can do more than just meeting regulatory requirements: it can provide sustainable, future-proof heat networks for high-rise residential housing.

We’re here to help

The countdown to OFGEM regulation is on. We’re here to help developers and consultants build low-carbon, compliant heat networks that meet Future Homes Standard and Part L requirements.

Speak with our experts today:
📧 enquiries@poweron-uk.co.uk
📞 03453 223322
🌐https://www.poweron-uk.co.uk/contact/