Contract Changes Information
Condition B3, Contract Changes Information, is one of the 29 Ofgem heat network authorisation conditions. It applies to suppliers of heat, and is set out at Section B, Condition 3 of Ofgem’s Heat Network Authorisation Conditions decision of January 2026. Registration with Ofgem closes on 26 January 2027.
What this condition requires
Give each Relevant Consumer not less than thirty-one days' notice before a Disadvantageous Unilateral Variation or an increase in the Charge (3.1). Do not increase the Charge more than once in any six-month period during a Relevant Year (3.2). The notice must meet the content requirements in 3.3, and in complying you must take into account whether the consumer is in a Vulnerable Situation and, where appropriate, their communication preferences (3.4). The notice must be provided separately from any other document, including a Bill, statement of account or marketing material (3.5). Important scope limit: the obligations relating to Charge increases (3.1.2) and to the six-month frequency cap (3.2) do not apply to the extent the Charges are Service Charges (3.6) — so a scheme billing through the service charge is subject to the variation notice but not the increase restrictions.
Applies to
Every supplier, for Relevant Consumers. 3.1.2 and 3.2 do not apply to the extent charges are Service Charges (3.6).
Core requirement
Thirty-one days notice before a Disadvantageous Unilateral Variation or a charge increase, and no more than one increase in any six months.
Key obligations
3.1, thirty-one days notice. 3.2, one increase per six month period. 3.3, the notice states the right to end the contract and displays charges inclusive of VAT. 3.5, the notice is separate from any bill or marketing.
Evidence Ofgem will look for
- A price change notice template meeting the thirty-one day and content rules
- A per network determination of whether charges are Service Charges
- On Service Charge networks, the Landlord and Tenant Act consultation route followed instead
Why this matters
The duty turns on the billing model. Applying the directly metered rules to a Service Charge network, or the reverse, misstates the obligation.
The condition in full
Reproduced from Ofgem’s Heat Network Authorisation Conditions decision, January 2026, Appendix 2.
Notices
3.1 The authorised person must ensure that each Relevant Consumer it supplies is provided with a notice not less than thirty-one (31) days prior to the event of:
3.1.1 a Disadvantageous Unilateral Variation; or
3.1.2 an increase in the Charges to the Relevant Consumer (including by making any reduction in the amount of a Discount that is applied to a Unit Rate or Standing Charge). each a "relevant contract change notice".
3.2 The authorised person must not make any increase to the Charge for a Relevant Consumer more frequently than once in any six (6) month period during a Relevant Year.
3.3 Any relevant contract change notice must:
3.3.1 inform the Relevant Consumer:
(a) that they may end the Supply Contract within a period of no longer than thirty (30) days; and
(b) of the consequences of ending the Supply Contract, including that the Relevant
Consumer may be subject to exclusions or other terms in relation to alternative energy supplies on or in relation to the relevant development and/or relevant premises;
3.3.2 include a statement to the effect that value added tax (at the applicable rate) is included in any Charge which is subject to value added tax and that this may be different to the way any such Charge is displayed on a Bill or statement of account;
3.3.3 display the Charge inclusive of value added tax at the applicable rate;
3.3.4 be provided in a Form and at an appropriate time that is designed to prompt the Relevant Consumer to make an informed choice in light of the proposed change, leaving reasonable time for the Relevant Consumer to make an informed choice in relation to the change before it takes effect; and
3.3.5 contain information which is sufficient to enable the Relevant Consumer to understand:
(a) the change, including the main reason(s) for the change;
(b) any potential implications (including any financial implications) of the change for the Relevant Consumer if no action is taken;
(c) when the change takes effect; and
(d) the Relevant Consumer's rights and available options relevant to the change.
3.4 In complying with paragraphs 3.1 and 3.3 the authorised person must take into account:
3.4.1 whether the Relevant Consumer is in a Vulnerable Situation; and
3.4.2 where appropriate, the Relevant Consumer's preferences for receiving notices.
3.5 A relevant contract change notice must be provided to the Relevant Consumer separately from any other document (including a Bill, statement of account, or marketing material).
Exception to compliance with condition
3.6 The obligations in paragraphs 3.1.2 and 3.2 do not apply to the extent that the relevant
Charges are Service Charges.
Does this apply to you?
Section B applies to the supplier of heat. This condition protects homes and small or micro businesses. It does not apply on industrial or self-supply networks. The registration checker works out your full set in a few questions. Registration closes on 26 January 2027.