Ongoing Fit and Proper Requirement
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
Must not appoint, or have in place, any person in a position of Significant Managerial Responsibility or Influence (SMRI) who is not fit and proper for the role (8.1). This is an ongoing duty, not a one-off declaration: maintain robust processes, systems and governance to ensure SMRI holders are fit and proper, and carry out regular assessments to confirm they remain so (8.2). In doing so, have regard to whether the individual has been responsible for or facilitated serious misconduct or mismanagement in any regulated sector; has relevant unspent criminal convictions in any jurisdiction, particularly fraud or money laundering; has insolvency history including undischarged bankruptcy, debt judgements or County Court judgments; has been disqualified as a company director; held SMRI at a gas or electricity supplier subject to a Last Resort Supply Direction; or held SMRI where a Special Administration Order was made (8.3). Note SMRI can include advisors or consultants with effective decision-making authority, not only employees.
The condition in full
Reproduced from Ofgem’s Heat Network Authorisation Conditions decision, January 2026, Appendix 2.
8.1 The authorised person must not appoint or have in place a person in a position of Significant Managerial Responsibility or Influence who is not a fit and proper person to occupy that role.
8.2 The authorised person must:
8.2.1 have in place and maintain robust processes, systems and governance to ensure that any person holding a position of Significant Managerial Responsibility or Influence at the authorised person is fit and proper to occupy that role; and
8.2.2 carry out regular assessments on such person(s) to ensure that they remain fit and proper to occupy that role.
8.3 In complying with paragraphs 8.1 to 8.2, the authorised person must have regard to and take account of all relevant matters, including whether the individual has:
8.3.1 been responsible for, contributed to or facilitated any serious misconduct or mismanagement (whether unlawful or not) in the course of carrying out an activity that is regulated in any sector (or, providing a service elsewhere which, if provided in Great Britain, would be such an activity);
8.3.2 any relevant unspent criminal convictions in any jurisdiction in particular fraud or money laundering;
8.3.3 any insolvency history, including undischarged bankruptcy debt judgements and County Court judgments;
8.3.4 been disqualified from acting as a director of a company;
8.3.5 been a person with Significant Managerial Responsibility or Influence at a current or former Gas Supplier or Electricity Supplier in respect of whose Customers' premises the Authority issued a Last Resort Supply Direction (including where they were a person with Significant Managerial Responsibility or Influence at that supplier within the twelve (12) months prior to the Last Resort Supply Direction being issued);
8.3.6 been a person with Significant Managerial Responsibility or Influence at a current or former authorised person or Relevant Energy Licensee in relation to whom a Special Administration Order has been made (including where they were a person with Significant Managerial Responsibility or Influence at that current or former authorised person or Relevant Energy Licensee within the twelve (12) months prior to the Special Administration Order being made);
8.3.7 been a relevant person in respect of premises to which an appropriate tribunal has appointed a manager under Section 24 or 24ZA of the Landlord and Tenant Act 1987;
8.3.8 been identified on a database of rogue landlords and property agents established under Section 28 of the Housing and Planning Act 2016;
8.3.9 owned or managed premises made the subject of a Relevant Order under the Housing Act 2004; or
8.3.10 been refused, had revoked (in whole or in part), restricted or terminated any form of authorisation, or had any disciplinary, compliance, enforcement or regulatory actions taken by any regulatory body in any jurisdiction, whether as an individual or in relation to a business in which that person held Significant Managerial Responsibility or Influence.
8.4 The authorised person must give particular regard to circumstances in which the relevant person has a background in the energy sector or the housing sector in Great Britain and the
67 Decision Heat networks regulation: authorisation conditions
previous actions of that person resulted in or contributed towards significant consumer or market detriment.
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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.