Ofgem
How Ofgem regulates Aberdeen Heat & Power
Like all heating networks, Aberdeen Heat & Power is now under the umbrella of Ofgem, the UK government’s energy market regulator for Scotland, England and Wales.
Protection was extended in January 2026 and means heating network customers are covered by the same Ofgem protections as other gas and electricity consumers.
This table summarises what’s changed and how it affects AHP customers. There’s more information from Ofgem about heating network regulation here.
Protection area | Gas & electricity customers (current Ofgem regulation) | Heat network customers (before 2026) | Heat network customers (under Ofgem post-2026) |
Fair pricing | Prices overseen by Ofgem; price cap for default tariffs; competition between suppliers. | No formal regulation; charges set by operator/landlord; no external oversight. | Ofgem will require fair, not disproportionate prices; benchmarking and investigations; ability to intervene if pricing is unfair (no cap initially). |
Billing & transparency | Clear billing rules: itemised bills, annual statements, tariff info, accurate meter reads. | Often opaque charges; sometimes bundled with rent/service charges; flat fees common. | Mandatory transparent billing; breakdown of charges; metered usage where feasible; pre-contract information. |
Service standards (GSOPs) | Guaranteed Standards of Performance with compensation for failures. | No statutory minimum standards. | GSOPs extended to heat networks: response times, reliability, compensation. |
Complaints & redress | Supplier complaints route plus Energy Ombudsman. | No dedicated redress; landlord or small claims. | Complaints handling standards; access to Ombudsman/Consumer Scotland; Ofgem oversight. |
Protections for vulnerable customers | Priority Services Register; winter disconnection protection; special assistance. | No consistent protections; reliant on goodwill. | Mandatory vulnerability protections including priority register and tailored support. |
Disconnection & debt | Strict disconnection rules; payment plans; prepayment options. | Very limited rules; disconnection or rent arrears recovery possible. | Limits on disconnection; fair debt management; sector-aligned protections. |
Continuity of supply | Supplier of Last Resort ensures continuity. | No statutory backstop if operator fails. | Ofgem step-in powers; continuity plans and alternative operators. |
Consumer advice | Citizens Advice / Consumer Scotland. | No dedicated advice channel. | Heat networks included within Citizens Advice / Consumer Scotland remit. |
Future improvements | Long-established regulatory framework. | Fragmented, no regulator. | Phased-in advanced protections; possible future price cap. |
Ofgem's protection for heat network consumers
Protection area: Fair pricing
Gas & electricity customers (current Ofgem regulation)
Prices overseen by Ofgem; price cap for default tariffs; competition between suppliers.
Heat network customers (before 2026)
No formal regulation; charges set by operator or landlord; no external oversight.
Heat network customers (from 2026, under Ofgem)
Ofgem will require fair, not disproportionate prices; benchmarking and investigations; ability to intervene if pricing is unfair. No price cap initially, but monitoring and enforcement.
Protection area: Billing and transparency
Gas & electricity customers (current Ofgem regulation)
Clear billing rules, including itemised bills, annual statements, information on tariffs, and the right to accurate meter reads.
Heat network customers (before 2026)
Often opaque charges, sometimes bundled with rent or service charges; flat fees are common.
Heat network customers (from 2026, under Ofgem)
Mandatory transparent billing, including breakdown of charges, metered usage where feasible, and pre-contract information for tenants and homebuyers.
Protection area: Service standards (Guaranteed Standards of Performance)
Gas & electricity customers (current Ofgem regulation)
Guaranteed Standards of Performance, including timelines for reconnection, appointments, and fault fixes, with compensation if standards are not met.
Heat network customers (before 2026)
No statutory minimum service standards.
Heat network customers (from 2026, under Ofgem)
Guaranteed Standards of Performance extended to heat networks, covering response times, supply reliability, and compensation if standards are missed.
Protection area: Service standards (Guaranteed Standards of Performance)
Gas & electricity customers (current Ofgem regulation)
Clear complaints route via the supplier, with access to the Energy Ombudsman for free, independent dispute resolution.
Heat network customers (before 2026)
No dedicated redress mechanism; disputes often handled via the landlord or through small claims.
Heat network customers (from 2026, under Ofgem)
Complaints handling standards introduced, with access to the Ombudsman or Consumer Scotland, and Ofgem oversight of unresolved cases.
Protection area: Protections for vulnerable customers
Gas & electricity customers (current Ofgem regulation)
Priority Services Register, protection from disconnection during winter, and special assistance for disabled, ill, or elderly customers.
Heat network customers (before 2026)
No consistent protections; support depends on landlord or operator goodwill.
Heat network customers (from 2026, under Ofgem)
Mandatory vulnerability protections, including a priority register, tailored support, and restrictions on disconnection and self-disconnection.
Protection area: Disconnection and debt
Gas & electricity customers (current Ofgem regulation)
Strict rules on disconnection, availability of payment plans, and use of prepayment meters as an alternative.
Heat network customers (before 2026)
Very limited rules; operators could disconnect supply or recover costs through rent arrears.
Heat network customers (from 2026, under Ofgem)
New limits on disconnection, requirements for fair debt management practices, and protections aligned with the wider energy sector.
Protection area: Continuity of supply
Gas & electricity customers (current Ofgem regulation)
Suppliers must maintain supply, and Ofgem ensures continuity if a supplier fails through the Supplier of Last Resort process.
Heat network customers (before 2026)
No statutory backstop if an operator fails, creating a risk of service disruption.
Heat network customers (from 2026, under Ofgem)
Ofgem step-in powers, including continuity plans and the ability to appoint alternative operators if a heat network fails.
Protection area: Consumer advice
Gas & electricity customers (current Ofgem regulation)
Access to statutory consumer advice from Citizens Advice and Consumer Scotland.
Heat network customers (before 2026)
No dedicated national consumer advice channel.
Heat network customers (from 2026, under Ofgem)
Heat network customers brought within the remit of Citizens Advice and Consumer Scotland, with access to Ofgem’s consumer advice hub.
Protection area: Future improvements
Gas & electricity customers (current Ofgem regulation)
Long-established regulatory framework with decades of precedent.
Heat network customers (before 2026)
Fragmented system with no single regulator.
Heat network customers (from 2026, under Ofgem)
Phased introduction of advanced protections, including deeper pricing reviews, technical standards, and the possibility of a future price cap.
