The Heat Networks (Market Framework Regulations) (Great Britain) 2025 are expected to soon affect almshouse charities with communal boilers that provide heating to multiple occupancies. It’s essential for these charities to be aware of their responsibilities under the new regulations. While some details are still uncertain, we’ve compiled a fact sheet below with the information available so far.

What has happened?

In 2018 the Competition & Markets Authority (“CMA”) recommended the regulation of the heat network sector. Since then and following two consultations, the Government has implemented the Energy Act 2023 (the “Act”) and will shortly implement the Heat Networks (Market Framework Regulations) 2025 (the “Regulations”).

The UK Government has introduced the Regulations to establish a comprehensive regulatory framework for heat networks. Guidance from the Government is forthcoming, so members should be aware that these changes will be taking place and prepare accordingly.

However, Ofgem will not begin regulating the sector until 27 January 2026, when most of its authorisation conditions will start to take effect. All regulations are planned to be in place and enforced from January 2027.

Who does it affect?

If a member charity has a communal boiler which heats multiple occupancies, it is likely to be classed as a heat network, and therefore the member charity will be classed as a heat network supplier or operator. Although almshouses have been previously exempt under the existing Heat Network (Metering and Billing) Regulations 2020, it is likely that the new standards which will come into force by 2026 will apply to almshouses. It is therefore a good idea to prepare for this, by following good standards of practice.

What is the change?

All existing heat network operators and suppliers will be deemed authorised from 1 April 2025. New networks will need to register. At the same time, the Consumer Advocacy bodies (Citizens Advice in England and Wales, Consumer Scotland in Scotland) will provide advice and advocacy services for heat network consumers, and the Energy Ombudsman will help to resolve disputes.

Areas known as ‘heat network zones’ will also be designated where heat networks are expected to be the lowest cost solution for decarbonising heat. Certain buildings within zones may be required to connect to heat networks within a specified timeframe, but the rules for this have not been announced yet (March 2025). In the meantime, six Advanced Zoning Programmes are active, including regions such as Bristol and two areas within London. 

What do members who are affected need to do now?

If an almshouse has a communal boiler that heats multiple units, here’s what the charity needs to do:

• Prepare for Ofgem registration: Following a period of being automatically authorised to operate, all heat networks will be required to notify Ofgem to maintain their authorised status after 26 January 2026. Government encourages all heat networks to prepare for regulation now by following existing good practice, such as that set out by the Heat Trust and the industry’s Code of Practice.
• Understand the rules: review the new regulations on heat networks, including standards for billing and system efficiency. Sign up to zoning alerts, ready for when they are implemented.
• Check system compliance: make sure the boiler and heating system meet required standards, including safety and energy efficiency.
• Ensure fair billing: the Regulations require that the prices for heating through the network are clear and fair. Make sure residents are charged fairly, based on actual heat usage. Further consultations will develop a fair pricing network later this year.
• Seek advice: consider getting legal or regulatory advice to ensure full compliance with the rules. Members may wish to seek advice from our panel of consultants who have been recommended by other members and are familiar with the almshouse model.

Support available:

Scheme	Who can apply	Deadline
Heat Network Efficiency Scheme (HNES)	As a heat network provider.	Next round of funding open soon. Current deadline 28 March
Heat Training Grant	You can get a grant of up to £500 towards eligible courses in the areas such as operation and maintenance, metering and feasibility.	Applied for via training provider. One grant per person as a discount or rebate depending on the course price.
The Warm Home Discount Scheme	As a resident, you qualify if you either: get the Guarantee Credit element of Pension Credit are on a low income and have high energy costs	Opens October 2025
Cold Weather Payment	As a resident, you may get Cold Weather Payments if you’re getting certain benefits or Support for Mortgage Interest.	Applied automatically if  the average temperature in your area is recorded as, or forecast to be, zero degrees Celsius or below over 7 consecutive days. You’ll get £25 for each 7 day period of very cold weather between 1 November 2024 and 31 March 2025.
Winter Fuel Payment	As a resident, if you were born before 23 September 1958, you could get either £200 or £300 to help you pay your heating bills for winter 2024 to 2025. This is known as a ‘Winter Fuel Payment’.	If you’re eligible, you’ll get a letter in October or November saying how much you’ll get. If you do not get a letter but you think you’re eligible, check if you need to make a claim.

Should you have any queries, please do not hesitate to contact the team here at the Association.

posted 20 March 2025

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Richmond Charities feature in the Charity Finance (February 2025) magazine.

Writer, Léa Legraien writes about the challenges charities are facing as they navigate high energy prices and climate change, looking at how they are making their buildings energy efficient.

She highlights the need for an ongoing source of support and signposting for charities and the ability to facilitate access to grant or loan funding, noting that environmental sustainability is not just the preserve of charities operating in the environmental sector, but that there are a growing number of charities from all sectors thinking about their environmental impact and how they can make their buildings more eco-friendly.

The article includes a special feature on the Richmond Charities in south west London and their new Passivhaus-certified wheelchair-accessible almshouses which opened to residents in December 2024.

To read the article in full, please click below:

posted 6 March 2025

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A member almshouse charity has kindly forwarded the below information about loan sharks that you may wish to share with your residents.

posted 28 January 2025

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FOR THE ATTENTION OF: almshouse charities with residents that have cognitive, mobility or any other issues that could affect their ability to respond to fire alarms.

Personal Emergency Evacuation Plans (PEEPS) – ‘Fire Safety in Specialised Housing’

In specialised housing schemes, such as sheltered, extra-care and supported housing, there will be reliance, ultimately, on rescue by the fire and rescue service in the event that residents cannot escape by themselves.

While detailed PEEPs need not be prepared for every resident, information should be collated in respect of any resident with particular cognitive, mobility or other issues affecting their ability to respond to fire alarm signals or attempts to make contact with them by fire-fighters, or to escape.

When collating and maintaining the list, it is important to have the following in place:

• The information should be made available to the fire and rescue service on arrival at the premises
• The information should be kept at the main entrance in a ‘premises information box’ (PIB), which can only be unlocked by the fire and rescue service, or remotely by an alarm receiving centre.
• Details of any residents using oxygen or other medical gases are also usually kept with this information. (It is important that operational fire-fighters are aware of arrangements for provision of information).
• Consideration can also be given to the provision of a plan adjacent to the fire alarm control panel, showing the locations of residents who would need instruction or assistance to evacuate their own flat (e.g., by means of a red stick-on dot). 
• It is essential that such information is kept up to date to avoid the provision of incorrect information to fire and rescue service crews.
• Sometimes more able-bodied neighbours (when present) are often willing to support those in need. If so, they would need to be provided with guidance so they do not endanger themselves.

Further guidance on ‘Fire Safety in Specialised Housing’ can be accessed from the National Fire Chiefs Council website here.

6 January 2025

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