Heat networks in Northern Ireland: protecting consumers and setting up regulation

Overview

The Department for the Economy (DfE) is consulting to seek views on proposals for the first phase of regulation for heat networks in NI, with a particular focus on establishing baseline consumer protections and regulatory oversight.

Heat networks (sometimes called district heating) supply heating and hot water (and sometimes cooling) to more than one premises, from a central source using insulated pipes.  Heat networks can help make better use of local sources of heat, including waste heat and renewable energy ensuring consumers pay a fair price for the energy we use locally by reducing our reliance on fossil fuels

A key characteristic of heat networks is that consumers cannot easily switch supplier if they are unhappy with the service. That means there needs to be clear, basic protections so that customers can understand what they are paying for, get accurate bills, and know where to go if something goes wrong.

Until January 2026, the Heat Networks (Metering and Billing) Regulations 2014 (HNMBR) applied across the United Kingdom (UK) and provided a baseline of consumer protections, primarily relating to metering and billing. These arrangements have since been replaced in Great Britain (GB) by a new regulatory framework. In Northern Ireland (NI), the HNMBR have remained in place on an interim basis while the Department develops a locally led approach.

The HNMBR are expected to be revoked in 2027. Without replacement provisions, this would leave heat network consumers in NI without regulatory protections. The Department has therefore developed proposals for a new, Northern Ireland-specific regulatory framework.

This consultation sets out proposals for the first phase of regulation for heat networks in NI. The proposals would: (1) establish the Utility Regulator’s (UR) role in heat networks, (2) introduce an authorisation regime for heat network operators, and (3) retain and adapt key protections on metering and billing that currently apply under the existing HNMBR, as they are due to be revoked.

We are also seeking views on how complaints should be handled, and what information should be collected from operators to help inform any future protections as the market develops.

Why your views matter

Your views will help inform the Department’s consideration of future legislation and regulatory arrangements supporting heat networks and protecting consumers.

What happens next

The Department will consider the feedback it receives from this consultation.  It will publish a response and decision document responding to the feedback it receives and set out its decisions on the issues raised in this consultation paper.  The Department may contact individual responders to clarify any aspects of their submissions if it considers it desirable to do so.

The Department will then develop its internal work plans for the actions which come from this consultation and publish consultation documents as those actions are progressed.