---
title: "Target Operating Model for Heat Networks Regulation"
ocid: "ocds-b5fd17-fd0e4b3a-50d7-49c0-b06f-3b5ae8fab930"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-fd0e4b3a-50d7-49c0-b06f-3b5ae8fab930"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-fd0e4b3a-50d7-49c0-b06f-3b5ae8fab930.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-fd0e4b3a-50d7-49c0-b06f-3b5ae8fab930.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "OFGEM"
published: "2024-11-18"
---

# Target Operating Model for Heat Networks Regulation

Buyer: OFGEM  
Current stage: Award  
OCID: ocds-b5fd17-fd0e4b3a-50d7-49c0-b06f-3b5ae8fab930

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## Summary

The UK Government, through Ofgem, has awarded a contract to Moorhouse Consulting Limited for the "Target Operating Model for Heat Networks Regulation" project. This procurement falls under the industry category of Business analysis consultancy services and is valued at £299,409. The contract, which began on 4th November 2024 and will end on 31st March 2025, aims to establish the operational framework for regulating heat networks across the UK. The procurement process followed an open procedure, inviting tenders from SMEs and other business entities. Key deliverables include segmentation, process identification and design, team structure planning, and developing a flexible operating model for Ofgem.

This tender presents significant opportunities for growth, particularly for businesses specialising in business analysis, project management, and business development consultancy. SMEs with expertise in regulatory frameworks, consumer protection, and technical standards in the energy sector are exceptionally well-positioned to benefit. The extensive scope covering the British Overseas Territories, Channel Islands, Europe, Isle of Man, and the UK provides a broad geographic reach, enhancing the potential market impact for the selected supplier.

## Notice

The UK Government is legislating to introduce statutory regulation for the heat networks market and the Energy Act 2023 has now been passed that appoints Ofgem as regulator for the heat network sector in Great Britain. Separately, the Scottish Government has established project teams to deliver the Scottish Government's policy position on a Scottish Heat Networks Licensing Regime, which will also be administered by Ofgem. 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. Support is required from a supplier to provide specialist support and advice in respect of establishing the foundations of operational readiness for regulating Heat Networks in the UK in terms of: * Segmentation. * Process identification and design. * Team structure. * Broader team placement for Ofgem. Additionally, the supplier will design the target operating model (TOM) with a view to being able to flex to unpredictable resource need and how the work will transition from the initial period and on to BAU delivery of the regulatory framework.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/5c97d2c8-fc7c-4f3e-b387-986d0e4133f3 |
| 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 | 18 Nov 2024 |
| Submission deadline | 1 Jan 2024 |
| Future notice date | Not specified |
| Award date | 29 Oct 2024 |
| Contract period | 4 Nov 2024 - 31 Mar 2025 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £299,409 |
| Lots value | Not specified |
| Awards value | £299,409 |
| 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 | MOORHOUSE CONSULTING |

## CPV Codes

### Divisions

- 72 - IT services: consulting, software development, Internet and support
- 79 - Business services: law, marketing, consulting, recruitment, printing and security

### Codes

- 72221000 - Business analysis consultancy services
- 72224000 - Project management consultancy services
- 79400000 - Business and management consultancy and related services
- 79411100 - Business development consultancy services

## Release History

- 18 Nov 2024 at 17:45 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/5c97d2c8-fc7c-4f3e-b387-986d0e4133f3

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/5c97d2c8-fc7c-4f3e-b387-986d0e4133f3
  18th November 2024 - Awarded contract notice on Contracts Finder
- https://www.mytenders.co.uk/search/show/search_view.aspx?ID=NOV169022
  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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