---
title: "Heat Networks Authorisation Conditions"
ocid: "ocds-b5fd17-0e65c491-b7d1-4174-bc56-d3cee927788b"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-0e65c491-b7d1-4174-bc56-d3cee927788b"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-0e65c491-b7d1-4174-bc56-d3cee927788b.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-0e65c491-b7d1-4174-bc56-d3cee927788b.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "OFGEM"
published: "2025-02-19"
---

# Heat Networks Authorisation Conditions

Buyer: OFGEM  
Current stage: Award  
OCID: ocds-b5fd17-0e65c491-b7d1-4174-bc56-d3cee927788b

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## Summary

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.

## Notice

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

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/a0f44c76-e554-4fca-8bc2-7c51897f2ecc |
| 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 |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 19 Feb 2025 |
| Submission deadline | 1 Jan 2025 |
| Future notice date | Not specified |
| Award date | 17 Feb 2025 |
| Contract period | 17 Feb 2025 - 30 Sep 2026 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £450,000 |
| Lots value | Not specified |
| Awards value | £450,000 |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | OFGEM |
| Locality | LONDON |
| Post town | East London |
| Postcode | E14 4PU |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI4 Inner London - East |
| ITL 3 | TLI42 Tower Hamlets |
| Local authority | Tower Hamlets |
| Electoral ward | Canary Wharf |
| Westminster constituency | Poplar and Limehouse |
| Delivery location | Not specified |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | TLT |

## CPV Codes

### Divisions

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

### Codes

- 79100000 - Legal services
- 79111000 - Legal advisory services
- 79140000 - Legal advisory and information services

## Release History

- 19 Feb 2025 at 17:45 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/a0f44c76-e554-4fca-8bc2-7c51897f2ecc

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/a0f44c76-e554-4fca-8bc2-7c51897f2ecc
  19th February 2025 - Awarded contract notice on Contracts Finder
- https://www.mytenders.co.uk/search/show/search_view.aspx?ID=FEB169416
  NOTE: To register your interest in this notice and obtain any additional information please visit the myTenders Web Site at the link provided.

## Notice URLs

- http://www.ofgem.gov.uk

## Provenance

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