Independent Audits
Every authorised person. Section A applies to everyone holding a heat network authorisation, whether they operate the network, supply heat over it, or both.
What this condition requires
Where Ofgem determines it necessary or expedient, it may either require you to commission an Independent Audit or appoint an Independent Auditor itself (11.1). If required to commission, do so without delay in accordance with the request and any terms of reference supplied, and provide Ofgem with a copy of the full audit report in the Form and by the date it sets (11.2). Co-operate fully with any audit or auditor, and take all reasonable steps to ensure Affiliates do the same (11.3). Exception for material that could not be compelled in evidence in civil proceedings (11.4). Post-audit duties that are easily missed: each report must be considered by appropriate members of senior management within four weeks of receipt from the auditor, and a documentary record kept of the decisions made and actions taken in response (11.5).
The condition in full
Reproduced from Ofgem’s Heat Network Authorisation Conditions decision, January 2026, Appendix 2.
Commissioning of Independent Audit
11.1 Where the Authority determines that the performance of any functions given or transferred to it by or under any legislation makes it necessary or expedient that the authorised person be audited by an Independent Auditor it may:
11.1.1 require the authorised person to commission an Independent Audit; or
11.1.2 appoint an Independent Auditor to carry out an Independent Audit of the authorised person.
11.2 If required to commission an Independent Audit under paragraph 11.1.1, the authorised person must:
11.2.1 commission the Independent Audit without delay in accordance with the request, including any terms of reference supplied by the Authority; and
11.2.2 provide to the Authority, in the Form requested by the Authority and by the date set by the Authority, a copy of the full audit report.
Co-operation with Independent Audit and the Authority
11.3 The authorised person must:
11.3.1 co-operate fully with any Independent Audit commissioned, or Independent Auditor appointed, under this authorisation condition; and
11.3.2 take all reasonable steps to ensure that its Affiliates co-operate fully with that Independent Audit or Independent Auditor, so as to enable and facilitate the carrying out of the Independent Audit.
11.4 This authorisation condition does not require the production of any information that the authorised person could not be compelled to produce or give in evidence in civil proceedings before a court.
11.5 The authorised person must ensure that:
11.5.1 without prejudice to its duty to provide a copy of the report to the Authority by the date set by the Authority, each report prepared in accordance with paragraph 11.2 is considered by appropriate members of its senior management team within four weeks of the report being provided by the Independent Auditor to the authorised person; and
11.5.2 it keeps a documentary record of the decisions made and actions taken by it in response to that report.
71 Decision Heat networks regulation: authorisation conditions
Does this apply to you?
Section A applies to every authorised person, so this condition applies to you regardless of whether you operate the network, supply heat over it, or both. The registration checker works out your full set in a few questions. Registration closes on 26 January 2027.