Governance, Planning and Operational Model for Heat Networks Regulatory Framework

The UK Government is legislating to introduce statutory regulation for the heat networks market and has recently recommenced on the legislation required to implement the Heat Networks regulatory regime (GB wide authorisation), the Energy Act 2023 has now been passed that appoints Ofgem has regulator for the heat network sector in Great Britain. Separately, the Scottish Government has established project teams to deliver the Scottish Government's policy position on a Scottish Heat Networks Licensing Regime, which will also be administered by Ofgem.

All heat networks will be required to provide notification to Ofgem to be authorised, this means that all domestic consumers and micro-businesses will be protected by the regulatory regime, including consumer protections on pricing, transparency, and quality of service. Heat Networks will also need to meet minimum technical standards and decarbonisation rules under the authorisation regime.

Ofgem therefore requires Programme Management advice in respect of the need to:

* Evolve Ofgem's governance arrangements so the team is setup to make decisions at the right level supported by relevant advice. This will involve clear definition of roles and responsibilities and implementing RACI matrix.

* Evolve Ofgem's planning activity in order to review the existing plan and take into account the needs of government stakeholders and agree on a target go live date for the regulatory framework. Involving the Identification and prioritisation of key milestones and how these link to scope and objectives of Ofgem's work.

* Devise a target operating model for both initial go live and the transition to BAU.