---
title: "Heat Networks: Modelling Technical Efficiency and Costs (Engineering and Economic Adv"
ocid: "ocds-b5fd17-9eb76051-4835-4624-9648-ae2beaf2eed0"
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source: "Contracts Finder"
current_stage: "Tender"
buyer: "OFGEM"
published: "2022-12-13"
---

# Heat Networks: Modelling Technical Efficiency and Costs (Engineering and Economic Adv

Buyer: OFGEM  
Current stage: Tender  
OCID: ocds-b5fd17-9eb76051-4835-4624-9648-ae2beaf2eed0

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## Summary

The buying organisation, Ofgem, has issued a tender titled "Heat Networks: Modelling Technical Efficiency and Costs" for consultancy support relating to heat networks regulation. The industry category is Electricity, heating, solar and nuclear energy. The procurement stage is active, with a tender period ending on 9th January 2023 and contract period starting from 6th February 2023 to 31st March 2023. The procurement method is an open procedure (below threshold), with a contract value of £42,000 in GBP.

This tender by Ofgem provides an opportunity for businesses involved in energy-efficiency consultancy, technical analysis, project management, business analysis, research and development consultancy, and environmental consultancy services. Small and medium-sized enterprises (SMEs) are considered suitable for this opportunity, presenting a potential for business growth by engaging with Ofgem in supporting the heat networks regulatory regime.

## Notice

Government is legislating to introduce statutory regulation for the heat networks market. They will appoint Ofgem as the regulator. All heat networks will be required to provide notification to Ofgem to be authorised, this means that all domestic consumers and micro-businesses will be protected by the regulatory regime, including consumer protections on pricing, transparency, and quality of service. Heat networks will also need to meet minimum technical standards and decarbonisation rules under the authorisation regime. Ensuring consumers receive a fair price and undertaking price investigations where Ofgem is concerned prices are disproportionate will be particularly challenging, given the scale and diversity of the heat networks market. The current winter challenges due to the gas price increases also means this is an area where there will be an increased focus. It is important for Ofgem to have good understanding about the impact that inefficiencies in some heat networks can have on pricing. Ofgem are seeking consultancy support to help better understand the relationship between technical efficiency and the costs of a heat network. This support will also include engagement with Government on the design of a technical assurance scheme to inform its design. This work will also inform Ofgem's understanding of how to compare or segment the market, and how these factors affect the price that heat networks customers are charged. Ofgem require modelling which can be added to and update with real data once this is available. The likely output is some type of excel model that can be further developed and a report summarising the overall findings of the work. Please see attached 2022-158 Heat Networks ITT document for further information.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/feafa47b-b332-4d89-9948-8425cdca653c |
| Notice type | Tender Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Open |
| Procurement method details | Open procedure (below threshold) |
| Tender suitability | SME |
| Awardee scale | Not specified |
| All stages | Tender |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 13 Dec 2022 |
| Submission deadline | 9 Jan 2023 |
| Future notice date | Not specified |
| Award date | Not specified |
| Contract period | 6 Feb 2023 - 31 Mar 2023 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £42,000 |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | Not specified |

## Status

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

## CPV Codes

### Divisions

- 09 - Petroleum products, fuel, electricity and other sources of energy
- 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
- 90 - Sewage, refuse, cleaning and environmental services

### Codes

- 09300000 - Electricity, heating, solar and nuclear energy
- 71314300 - Energy-efficiency consultancy services
- 71621000 - Technical analysis or consultancy services
- 72221000 - Business analysis consultancy services
- 72224000 - Project management consultancy services
- 73200000 - Research and development consultancy services
- 73210000 - Research consultancy services
- 79311400 - Economic research services
- 79400000 - Business and management consultancy and related services
- 79410000 - Business and management consultancy services
- 79411100 - Business development consultancy services
- 90713000 - Environmental issues consultancy services

## Release History

- 13 Dec 2022 at 17:45 - Tender - Tender Notice - https://www.contractsfinder.service.gov.uk/Notice/feafa47b-b332-4d89-9948-8425cdca653c

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/feafa47b-b332-4d89-9948-8425cdca653c
  13th December 2022 - Opportunity notice on Contracts Finder
- https://www.mytenders.co.uk/search/show/search_view.aspx?ID=DEC165702
  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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