What is a heat network
A heat network means that more than one property receives heating and/or hot water from the same source, usually and plant room which uses Natural Gas to heat water.
There are two types of heat networks, District and Communal.
- A District network is a group of separate buildings receiving heat via pipework from a central Energy Centre.
- A Communal Network is a single building where all the properties receive heating and/or hot water from a single plant room, usually on the ground floor or roof.
Lambeth is responsible for a number of Heat Networks. We operate 88 different networks, supplying heating and hot water to 117 buildings with more than 4,118 dwellings.
Statutory requirements
Lambeth have registered all of their networks with Government as required as part of the Heat Network, Metering Billing Regulations as amended in 2020. Works are currently underway to install building and dwelling level metering where required by the regulations.
Energy Act 2023
The Energy Act 2023 is an important, recent addition to UK law. It provides for regulation of the Energy Sector, including heat networks. In January 2026, Ofgem will become the regulator for heat networks.
Heat Network Owners will be required to register each network for an authorisation to supply heat and submit regular information on network performance and Customer Protection issues to Government in order to keep the authorisation.
Your property
Installing a heat meter in your property
A viability assessment is required to establish whether a heat meter is required in your property. The assessment is carried out using a tool supplied by Government. Where your building is found to be viable, meters will be installed.
Ofgem regulation of heat networks
Ofgem are not regulating heat networks in the borough currently. A 12-month transition period is due to begin in January 2026, to allow Heat Network Owners to register their networks and obtain the authorisations to supply heat. Full regulation of the sector under Ofgem is due to commence in January 2027.
Payments and bills
Back billing
Back billing is the issuing of a second or “catch-up” bill for a period in excess of 12 months before the current date. Ofgem are the current regulator for the Gas and Electricity sectors, where back billing is not permitted.
Heat Networks are not currently under the same regulatory restrictions as the Gas and Electricity Sectors. When the Energy Act comes into force in 2026, Government have proposed that you be billed for Heating and/or hot water used no further than 18 months from the date the bill is issued. This is subject to consultation.
Recharging for works required by HNMBR or the Energy Act
Lambeth council tenants will not be charged for the installation of metering or monitoring equipment. Leaseholders will be recharged for any works to their dwelling/building in the same manner as with other Capital Works, subject to the standard Section 20 consultation processes here applicable.
Refusing to pay heating charges
If you believe that your heating charge is not correct you should contact us. A failure to pay for your heating via a charge within rent for tenants or a service charge for leaseholders could result in enforcement action being taken against you by Lambeth.
Installing PAYG meters
Pay as You Go (PAYG) heat meters have been installed in a small number of recently built Lambeth buildings. A final decision has not yet been made with regards to the Billing/Charging solution but will be made in 2025. You will be informed in advance of any metering works taking place within your property.
Challenging your heating bill to organisations that are not Lambeth
If you do not believe your heating/hot water bill is correct or accurate you can challenge this with the Office for Product Safety and Standards.
You could also discuss concerns or complaints relating to your heating/hot water supply with Citizens Advice Bureau or The Energy Ombudsman.