Interpretation
Condition A2, Interpretation, is one of the 29 Ofgem heat network authorisation conditions. It applies to every authorised person, and is set out at Section A, Condition 2 of Ofgem’s Heat Network Authorisation Conditions decision of January 2026. Registration with Ofgem closes on 26 January 2027.
What this condition requires
Sets the general rules of interpretation for the authorisation conditions (2.1-2.9). Words defined in the Energy Act 2023 or the Regulations carry the same meaning (2.1). References to an enactment include any successor provision covering fundamentally the same subject matter (2.2). References to guidance, industry codes, agreements or statements are to those documents as modified, supplemented, transferred, novated or replaced from time to time (2.3) — so obligations track the current version of Ofgem guidance without further notice. It imposes no duty of its own.
Applies to
Every authorised person, save where another condition provides otherwise.
Core requirement
This condition sets the rules of interpretation, adopts the Energy Act 2023 and Regulations definitions, and keeps obligations binding after a missed deadline.
Key obligations
2.1, Energy Act 2023 and Regulations definitions carry the same meaning. 2.10, a missed deadline does not discharge the obligation. 2.16, service of notices under Schedule 1 to the Regulations.
Evidence Ofgem will look for
- Defined terms used consistently with the Energy Act 2023 and the Regulations
- A process for keeping references to guidance and legislation current
- Remediation planning that treats missed deadlines as live obligations
Why this matters
Treating a missed registration or reporting date as spent leaves the obligation live under 2.10. The exposure is assuming a deadline has closed off a duty when it has not.
The condition in full
Reproduced from Ofgem’s Heat Network Authorisation Conditions decision, January 2026, Appendix 2.
General rules of interpretation
2.1 Unless the context otherwise requires, any word or expression defined in the Energy Act 2023 or the Regulations has the same meaning when used in the authorisation conditions.
2.2 Unless the context otherwise requires, references in the authorisation conditions to a provision of any enactment where after the launch date:
2.2.1 the enactment has been replaced or supplemented by another enactment; and
2.2.2 such enactment incorporates a corresponding provision in relation to fundamentally the same subject matter, shall be construed as including a reference to the corresponding provision of that other enactment.
2.3 Unless the context otherwise requires:
2.3.1 any reference in the authorisation conditions to guidance, an industry code, an agreement or a statement is a reference to that guidance, code, agreement or statement as modified, supplemented, transferred, novated or replaced from time to time; and
2.3.2 any reference to a statute or subordinate legislation is a reference to that statute or subordinate legislation as amended or re-enacted from time to time.
2.4 The heading or title of any section, authorisation condition, schedule, paragraph or sub- paragraph in the authorisation conditions is for convenience only and does not affect the interpretation of the text to which it relates.
2.5 Unless the context otherwise requires, any reference in an authorisation condition to a paragraph or sub-paragraph or part is a reference to it in that authorisation condition.
2.6 Any reference in the authorisation conditions to any other provision of the authorisation conditions is to be read, if the authorisation conditions are subsequently modified, as a reference (so far as the context permits) to the corresponding provision of the authorisation conditions as modified.
2.7 The words "include", "including", and "in particular" where they occur in any authorisation condition are to be read without limitation to the generality of the preceding words.
2.8 Unless the context or an authorisation condition otherwise requires:
2.8.1 words and expressions referencing the masculine gender include the feminine;
2.8.2 words and expressions referencing the feminine gender include the masculine;
2.8.3 words and expressions in the singular include the plural and words and expressions in the plural include the singular.
2.9 Unless the context otherwise requires, any reference in an authorisation condition:
2.9.1 to a "supply" is to be read as being a reference to a supply of heating, cooling or hot water;
2.9.2 to a "supply of heating, cooling or hot water" is to be read as being applicable to whichever of heating, cooling and/or hot water is being supplied or (as the context requires) capable of being supplied to a Consumer;
2.9.3 to a "supply" or a "supply of heating, cooling or hot water" is to be read as being a reference to a supply by means of a relevant heat network;
2.9.4 to a "relevant heat network" is to be read as including a reference to a relevant part, where applicable;
2.9.5 to the "regulated activity of operating" or to the "regulated activity of supplying" is to be read as meaning the regulated activity within the meaning of regulation 13.1(a) of the Regulations or regulation 13.1(b) of the Regulations, as applicable, and references to "suppliers" or "operators" are to be construed accordingly;
2.9.6 to an "operator" includes a person who is taken to operate a relevant heat network but only in respect of the relevant part in accordance with regulation 13(4)(b) of the Regulations; and
2.9.7 to a person being "treated as authorised" in relation to a regulated activity is to be read as a reference to a person being treated as holding a heat network authorisation in relation to that regulated activity in accordance with regulation 27, and similar expressions to any of the above shall be construed accordingly.
Performance of obligations
2.10 Where any obligation in the authorisation conditions is required to be performed by a specified date or time or within a specified period and the authorised person has failed to do so, the obligation will continue to be binding and enforceable after the specified date or time or after the end of the specified period, without prejudice to all rights and remedies available against the authorised person in relation to its failure.
Specific application of powers
2.11 Unless a contrary intention appears, any power of the Authority under any provision of the authorisation conditions:
2.11.1 to give a direction, consent, derogation, approval or designation is a power:
(a) to give it to such extent, for such period of time and subject to such conditions as the Authority thinks reasonable in all the circumstances of the case; and
(b) to revoke or amend it (after consulting with the authorised person) or give it again under that power; and
2.11.2 to make a determination or a decision is a power:
(a) to make it subject to such conditions as the Authority thinks reasonable in all the circumstances of the case; and
(b) to make it again under that power.
2.12 Any direction, consent, derogation, determination, approval, designation, decision or other instrument given or made by the Authority in connection with an authorisation condition will be in Writing.
Date to be specified
2.13 In each case in which the Authority may specify a date under the authorisation conditions, it may specify:
2.13.1 that date; or
2.13.2 the means by which that date is to be determined.
Continuing effect
2.14 Anything done under or because of an authorisation condition, which is in effect immediately before that authorisation condition is modified, has continuing effect for so long as it is permitted or required by or under the modified authorisation condition.
2.15 Without prejudice to the generality of paragraph 2.14, every direction, consent, determination, designation, approval, decision or other instrument given or made by the Authority in relation to an authorisation condition, which is in effect immediately before that authorisation condition is modified, has continuing effect under the modified authorisation condition.
Service of notices
2.16 The provisions of Schedule 1 of the Regulations (Service of notices, etc. by the Regulator) shall have effect as if set out herein and as if:
2.16.1 for the words `these Regulations' there were substituted the words `the authorisation conditions'; and
2.16.2 for the words `the Regulator' there were substituted the words `the Authority'.
Application of this authorisation condition
2.17 This authorisation condition applies save to the extent that a given authorisation condition provides otherwise.
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.