Planning

Heat Network Technical Assurance Scheme (HNTAS) Scheme Operator

DEPARTMENT FOR ENERGY SECURITY & NET ZERO

This public procurement record has 2 releases in its history.

PlanningUpdate

15 May 2025 at 14:01

Planning

04 Mar 2025 at 10:01

Summary of the contracting process

The Department for Energy Security & Net Zero is overseeing the procurement process for the Heat Network Technical Assurance Scheme (HNTAS) Scheme Operator. This is currently in the planning stage with a market engagement notice published, signalling opportunities for interested parties in the industry. The procurement falls under the services category and is focused in the United Kingdom, particularly involving businesses in project management consultancy and technical services. Key dates include a Supplier Engagement Call on 24th March 2025 and an expression of interest deadline on 17th April 2025. The tender is expected to commence with a contract start date on 31st October 2025 for an initial two-year term, with optional extensions, and the estimated contract value is up to £11.4 million.

This procurement represents a significant opportunity for businesses specialising in project management, business services, internal audit, and technical consultancy, particularly those focusing on sustainability and compliance in the energy sector. Given the involvement of Ofgem and the transformation of technical standards in the heat networks arena, this tender is suited for SMEs and VCSEs capable of managing complex assurance schemes and regulatory compliance. Businesses that excel in collaboration and innovation, perhaps even forming consortia for a comprehensive service offering, could find substantial growth by participating in such a forward-thinking government project aimed at market growth and low carbon development.

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Notice Title

Heat Network Technical Assurance Scheme (HNTAS) Scheme Operator

Notice Description

The Department for Energy Security and Net Zero (DESNZ) wishes to establish a contract for a Scheme Operator to operate the Heat Network Technical Assurance Scheme (HNTAS). In 2020, BEIS consulted on developing a regulatory market framework for heat networks to protect consumers, support market growth and develop low carbon networks. Within this consultation views were sought on introducing mandatory minimum technical standards for heat networks. This proposal received strong support from respondents, as did the proposal that heat network suppliers should demonstrate compliance with technical standards through an accredited certification scheme. The full consultation and market response can be found here: https://www.gov.uk/government/consultations/heat-networks-building-a-market-framework A further heat networks technical standards consultation is planned for 2025, responses to which will need to be taken into consideration for the implementation of the scheme and the proposed requirements of the HNTAS Scheme Operator. The Energy Act (2023) provides for Ofgem to be appointed as regulator of the heat networks sector and grants Ofgem the power to authorise individuals to operate heat networks and undertake supply activity. Ofgem will grant authorisation to a heat network operator, provided that the operator's network meets certain authorisation conditions. The Energy Act provides for compliance with minimum technical standards to be included as one of these conditions. This lays the foundation for technical standards secondary legislation which is expected to come into force in 2026 to introduce mandated minimum technical standards for heat networks (e.g. mandating requirements on water flow temperatures, pipe insulation, etc). The majority of heat networks (existing and new) across a range of different characteristics (large city sized district heating to single block communal networks) will be in scope of this requirement. To promote compliance with these minimum technical standards, we are developing an assurance scheme: HNTAS. The technical specifications which set out the minimum technical standards that heat network operators will need to adhere to, and that will be subject to assurance, is being written and is expected to be completed in 2025. Work is also underway to develop the assurance processes themselves, these being the procedures to assess compliance. Together, the technical specification and assurance processes represent normative documents, a set of documents describing what heat suppliers must do. Once legislation is in place, we intend to designate these normative documents as a Code, adherence to which will be required in regulation. Heat networks are comprised of several elements (e.g. energy centre, district distribution network, communal distribution network, thermal substation, consumer connection and consumer heat system). Heat networks also have several stages within their lifespans (e.g. feasibility, design, construction, and operation and maintenance). We expect the Code to set minimum technical standards for each of these elements and stages. In order for a heat network to be assured as having met the technical requirements in this rulebook, we intend that heat network operators will be awarded assessment passes by HNTAS licensed assessors once they have demonstrated that they have met the necessary standards. HNTAS licensed certifiers will then need to certify that a network has met these standards across all relevant elements and stages. Assessor and certifier requirements and accreditation processes are currently in development. DESNZ is currently overseeing a pilot to test the scheme on heat networks, with the pilot being run by a 'Shadow Service Provider'. Lessons learnt from this pilot will be considered when finalising the requirements of the HNTAS Scheme Operator. The Energy Act also provides for Ofgem to award a licence to a technical standards Code Manager. The Code Manager, as Ofgem's licensee, is the entity that must carry out the requirements of that licence. DESNZ are currently working to establish the form of legal entity that the code manager will take. The Code Manager may take the form of an incorporated entity, called HNTAS Ltd, which would be limited by guarantee. The primary functions of the Code Manager include overall responsibility for HNTAS, operating the scheme, and maintaining the Code. The Code documents may comprise of technical specifications, assurance procedures and assessor requirements. We expect that the Code Manager will subcontract many of these functions. We anticipate that DESNZ will procure the contract, with a possibility that the contract is novated or assigned to the technical standards Code Manager at a later date. We anticipate that the contract would last for 2 years beginning in October 2025, with the options to extend for 6 months + 6 months at the end of year 2 and midway through year 3 respectively. The commencement of the contract is prior to the introduction of minimum standards, planned for 2026, in order to provide the necessary lead-in and setup time. Further information can be found at Heat Network Technical Assurance Scheme (HNTAS) - GOV.UK We are looking for a supplier, or consortium of suppliers, to provide the following services: * Manage the overarching heat network technical assurance scheme * Maintain the code on behalf of the code manager, in accordance with Ofgem's licence conditions * Liaise with a Training Provider and Certification Body to ensure the smooth operation of the assurance scheme * Secretariat to the Heat Network Technical Assurance Scheme Board, currently known as the Code Management Committee, and Executive staff * Committee administration * Keep the Heat Network Technial Assurance Scheme and Code Management Committee Terms of Reference up to date * Deal with any appeals or disputes arising from heat network operators, assessors or certifiers in relation to the scheme * Manage an online digital service; o Manage the registration of stakeholders and heat networks o Maintain the Heat Network Technical Assurance Scheme database of information on Heat Networks o Utilise the data collected for the effective running of the scheme * Conduct centralised audits and assessments * Provide wider sector support to aid the industry's understanding of the scheme's procedures and requirements * Manage communications to ensure regular updates and changes to scheme are communicated effectively to stakeholders * Promotion of the scheme to achieve early compliance * Develop and update content for guidance on the Heat Network Technical Assurance Scheme and the code * Providing support, including technical support, to heat network operators and assessors in cases where further guidance is needed Estimated Contract value: Likely to be up to PS7m for initial term plus optional extension up to PS2.5m Estimated Contract duration: potentially 2 years initial term plus optional 6 months + 6 months extensions Please answer the below question and send your responses to katsiaryna.addiego2@energysecurity.gov.uk by 5pm GMT on 17th April 2025. Interest: Are you provisionally interested in bidding for the contract we are looking to procure? If you would like to send any clarification questions, please use the email address above.

Planning Information

Supplier Engagement Call on 24th March at 10am UK time – details (1 hour call only): Microsoft Teams: Meeting ID: 352 745 212 646 Passcode: rm3jr6jf Dial in by phone: +44 20 3321 5238, 298660265# United Kingdom, City of London Phone conference ID: 298 660 265# For any questions please contact: katsiaryna.addiego2@energysecurity.gov.uk If you would like to receive more information and receive the EOI (expression of interest) document, please contact katsiaryna.addiego2@energysecurity.gov.uk.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04e929
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/021823-2025
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK2 - Preliminary Market Engagement Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Not Specified
Procurement Method Details
Not specified
Tender Suitability
SME, VCSE
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

71 - Architectural, construction, engineering and inspection services

72 - IT services: consulting, software development, Internet and support

73 - Research and development services and related consultancy services

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


CPV Codes

71356000 - Technical services

72224000 - Project management consultancy services

73200000 - Research and development consultancy services

79000000 - Business services: law, marketing, consulting, recruitment, printing and security

79212200 - Internal audit services

Notice Value(s)

Tender Value
£9,500,000 £1M-£10M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
15 May 20259 months ago
Submission Deadline
Not specified
Future Notice Date
1 Jul 2025Expired
Award Date
Not specified
Contract Period
31 Oct 2025 - 30 Oct 2027 1-2 years
Recurrence
Not specified

Notice Status

Tender Status
Planning
Lots Status
Planning
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
DEPARTMENT FOR ENERGY SECURITY & NET ZERO
Additional Buyers

MISSING

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
SW1A 2HP
Post Town
South West London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified

Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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This lays the foundation for technical standards secondary legislation which is expected to come into force in 2026 to introduce mandated minimum technical standards for heat networks (e.g. mandating requirements on water flow temperatures, pipe insulation, etc). The majority of heat networks (existing and new) across a range of different characteristics (large city sized district heating to single block communal networks) will be in scope of this requirement. To promote compliance with these minimum technical standards, we are developing an assurance scheme: HNTAS. The technical specifications which set out the minimum technical standards that heat network operators will need to adhere to, and that will be subject to assurance, is being written and is expected to be completed in 2025. Work is also underway to develop the assurance processes themselves, these being the procedures to assess compliance. Together, the technical specification and assurance processes represent normative documents, a set of documents describing what heat suppliers must do. Once legislation is in place, we intend to designate these normative documents as a Code, adherence to which will be required in regulation. Heat networks are comprised of several elements (e.g. energy centre, district distribution network, communal distribution network, thermal substation, consumer connection and consumer heat system). Heat networks also have several stages within their lifespans (e.g. feasibility, design, construction, and operation and maintenance). We expect the Code to set minimum technical standards for each of these elements and stages. In order for a heat network to be assured as having met the technical requirements in this rulebook, we intend that heat network operators will be awarded assessment passes by HNTAS licensed assessors once they have demonstrated that they have met the necessary standards. 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