Northern Ireland moves to establish first locally led heat network framework

UK – Northern Ireland has set out proposals for its first locally led heat network regulatory framework, introducing operator authorisation, consumer protections and clearer oversight as the sector prepares for growth.

The Department for the Economy (DfE) is consulting on the framework until 1 October 2026, ahead of the expected withdrawal of existing Heat Network (Metering and Billing) Regulations in 2027.

Around 90 heat networks serving approximately 3,000 consumers are currently recorded in Northern Ireland. DfE says a clearer regulatory structure will be important if networks are to attract investment and play a greater role in decarbonisation, including through large-scale heat pumps, geothermal energy and recovered industrial heat.

New authorisation regime

The Utility Regulator, already designated as Northern Ireland’s heat network regulator under the Energy Act 2023, would maintain a public register, oversee authorisation, monitor compliance and take enforcement action where necessary.

Operators would not require individual licences, but would have to comply with general authorisation conditions. Existing networks registered under current regulations would receive deemed authorisation.

The Consumer Council for Northern Ireland would act as the independent advocate for heat network customers.

By putting a local regulatory framework in place now, we can protect consumers while creating the conditions for investment in low-carbon heating

— Dr Caoimhe Archibald, Economy Minister

Consumer protection at the centre

The first phase would largely retain and adapt existing protections covering metering and billing, while requiring operators to provide information to the regulator and maintain an accessible complaints process.

DfE is also considering a complaints route involving the operator, Consumer Council and, where regulatory compliance is involved, the Utility Regulator.

The Department says the initial requirements should be familiar to existing operators and are not expected to create material additional regulatory burdens.

Supporting heat network growth

DfE says its Heat Network Stakeholder Group has highlighted the need for a clear regulatory process to accelerate development and improve investor confidence.

Further protections could follow as the market develops. Subject to the consultation, DfE intends to bring forward secondary legislation for approval by the Northern Ireland Assembly before the end of the current mandate.