Award

Heat Networks Authorisation Conditions

OFGEM

This public procurement record has 1 release in its history.

Award

19 Feb 2025 at 17:45

Award Notice
Summary of the contracting process

The Department of Energy Security and Net Zero (DESNZ) commissioned a contract awarded to Tlt LLP for drafting and amending Heat Networks Authorisation Conditions. This project, with an approximate value of £450,000, supports Ofgem in establishing a Market Framework for heat networks, as defined under the Energy Act 2023. The contract, categorised under legal services (CPV 79100000), runs from 17 February 2025 to 30 September 2026. The procurement process followed an open procedure, and key tasks include drafting new conditions and reviewing existing drafts. The delivery addresses include British Overseas Territories, Channel Islands, Europe, Isle of Man, the UK, and worldwide locations.

This tender offers substantial opportunities for legal firms specialising in energy regulation and consumer protection. The contract's high value and the need for detailed legal expertise in drafting enforceable conditions mean that firms well-versed in legal advisory services (CPV 79111000) and information services (CPV 79140000) are ideally suited. Completing this project successfully can position businesses as key players in the expanding and critical market of heat networks, aligning with the UK's net zero strategy and regulatory framework.

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Notice Information

Notice Title

Heat Networks Authorisation Conditions

Notice Description

Heat Networks are novel heat distribution method, where heating and cooling is sent from a central source to multiple users. They are a key element of the UK's net zero strategy but are currently unregulated. To ensure that the UK heat network market can grow to meet consumer needs, regulation was introduced under the Energy Act 2023 which appointed Ofgem as the regulator. Ofgem is now working to establish a Market Framework which will include rules on Consumer Protection, Metering, Step-in and Technical Standards. Similarly to how the gas and electricity market is regulated, heat suppliers and operators will be authorised to operate heat networks. Requirements will subsequently be implemented through authorisation conditions, which will be legally binding and Ofgem will be able to take compliance action to enforce. The Department of Energy Security and Net Zero (DESNZ) had commissioned the initial draft of the first batch of Ofgem will need external legal support to amend the first batch of Authorisation Conditions following the closure of the consultation, as well as requiring support to review existing drafts of the outstanding Authorisation Conditions and to draft Authorisation Conditions where no draft currently exists. Ofgem expects there to be around 16 Authorisation Conditions in this second batch. Ofgem also requires support in drafting Installation and Maintenance Licence Conditions and the Scottish Heat Networks Licence Conditions. Ofgem expects each set of Licence Conditions will include fewer than 10 Licence Conditions (fewer than 20 Licence Conditions in total). As these conditions will be legally binding and enforceable via powers set by the Energy Act 2023 (and subordinate legislation), these conditions must be drafted by lawyers. This is to ensure that conditions set are within the scope of authorised activity, and ensure that conditions are clear, legally unambiguous and can achieve their aims without having unintended consequences or opening Ofgem to legal challenge. It is envisaged that the following tasks will be required from a supplier: * Reviewing and amending batch 1 conditions * Drafting of new conditions * Reviewing and amends following policy consultation * Drafting of Installation and Maintenance Licence Conditions * Drafting of Scottish Licence Conditions * Reviewing and amends post potential statutory consultation

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-0e65c491-b7d1-4174-bc56-d3cee927788b
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/a0f44c76-e554-4fca-8bc2-7c51897f2ecc
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
SME
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

79 - Business services: law, marketing, consulting, recruitment, printing and security

CPV Codes

79100000 - Legal services

79111000 - Legal advisory services

79140000 - Legal advisory and information services

Notice Value(s)

Tender Value
£450,000 £100K-£500K
Lots Value
Not specified
Awards Value
£450,000 £100K-£500K
Contracts Value
Not specified

Notice Dates

Publication Date
19 Feb 20251 years ago
Submission Deadline
1 Jan 2025Expired
Future Notice Date
Not specified
Award Date
17 Feb 20251 years ago
Contract Period
17 Feb 2025 - 30 Sep 2026 1-2 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
OFGEM
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
E14 4PU
Post Town
East London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI4 Inner London - East
Small Region (ITL 3)
TLI42 Tower Hamlets
Delivery Location
Not specified
Local Authority
Tower Hamlets
Electoral Ward
Canary Wharf
Westminster Constituency
Poplar and Limehouse

Supplier Information

Number of Suppliers
1
Supplier Name

TLT

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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