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:

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

posted 20 March 2025

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