For investors, a heat network promises long-term demand and a stake in the transition to cleaner energy; for households and businesses, it raises more immediate questions about bills, reliability and who takes responsibility when things go wrong. Bringing those perspectives together will determine whether the Government’s ambitions translate into infrastructure that communities welcome.
That shared ambition ran through Martin McCluskey’s recent speech at the ADE Heat Network Conference, which coupled support for investment and local leadership with an acknowledgement that poor service has damaged public confidence. His argument that communities must feel the benefits of the transition creates an opportunity for developers and operators to demonstrate what well-designed, well-managed networks can offer.
The legislative framework is beginning to address both sides of that equation, with the Energy Act 2023 providing powers for heat network zoning in England, while Ofgem’s consumer protection rules took effect across Great Britain in January 2026. Together, these measures aim to strengthen investment certainty and confidence in service standards, although zoning still depends on implementing regulations.
For developers, that greater certainty provides a stronger foundation for building local support, particularly where building owners may face requirements to connect. The Government’s January zoning response acknowledged that further legislation is needed to enable charging for connections made under compulsory notices, leaving commercial negotiation central to delivery in the meantime. Early engagement can help establish customer needs, resolve concerns and develop an offer that supports both take-up and long-term commercial viability.
The proposed framework would also give local zone bodies a role in assessing detailed prices and make social value commitments conditions of consent. Done well, this could create a clearer basis for agreement between developers and authorities, giving appropriate weight to affordability, jobs and skills alongside deliverability. Well-resourced councils and clear expectations would help developers shape credible proposals and progress them with greater confidence.
McCluskey’s interest in a Regulated Asset Base financing model offers a further opportunity to explore how the sector can attract capital at scale. Clear arrangements for allocating costs and risks will be important to securing investor confidence and demonstrating the model’s value to customers.
The opportunity is to build infrastructure that earns support through dependable service, transparent pricing and visible local benefits, with engagement shaping decisions from the outset. For developers, that engagement is an investment in stronger relationships, greater certainty and future demand. The real measure of success will be whether the first generation of customers becomes the strongest advocate for the next generation of networks.