Provision of Billing and Price Transparency of Information
Suppliers of heat to domestic consumers. Section B applies where heat is supplied to domestic consumers. A network serving only non-domestic consumers is not subject to it.
What this condition requires
Where Supply Meters are installed, Bills and Billing Information must be based on actual meter readings (6.2), subject to the estimation rules in 6.3 and the practicability exception in 6.6; issue a Bill at least once a year (6.4). Take reasonable steps where a consumer-provided reading appears inaccurate (6.5). Make no specific charge for providing a Bill or Billing Information (6.7-6.8). Supply Billing Information to an Energy Services Provider at the consumer's request (6.9). Billing Information has defined content, including current Charges (6.10). Frequency rules apply for electronic billing and automated meter reading (6.11-6.12); Bills must cover the agreed period and be provided promptly after it ends (6.13-6.14). Provide information about all available options for receiving Bills (6.15), in a retainable form (6.16), and a choice of payment methods without unreasonable refusal or delay in switching (6.17). Prepayment Meter consumers must receive at least an annual account statement meeting 6.19. Critical scope limit: paragraphs 6.20 to 6.31 substantially modify this condition where Charges are Service Charges — annual billing becomes at least once per Service Charge period (6.20), the practicability test changes (6.21-6.22), 6.7 and 6.8 do not apply (6.23), 6.9 is replaced (6.25), 6.10 is modified (6.26), 6.11, 6.13, 6.14 and 6.17 do not apply (6.27), separate bill content applies (6.28), and 6.18-6.19 are replaced by the substitute statement in 6.30-6.31. Establish the charging model before assessing compliance.
The condition in full
Reproduced from Ofgem’s Heat Network Authorisation Conditions decision, January 2026, Appendix 2.
Application of Condition
6.1 Where the supply to a Consumer is subject to a lease to which Sections 18 to 24 of the Landlord and Tenant Act 1985 apply (or any other agreement governed by legislative provisions with similar effect in any jurisdiction within Great Britain), the authorised person's obligations under this authorisation condition in relation to such supply are to be construed in accordance with the modifications in Part Two of this authorisation condition.
Part One of this Condition
Billing based on actual consumption etc. where Supply Meters are installed
6.2 Subject to paragraph 6.3 and 6.6, where Supply Meters are installed, the authorised person must ensure that all Bills and Billing Information for the supply to a Relevant Consumer are accurate and based on actual consumption.
6.3 Where Bill or Billing Information for a supply of heating, cooling or hot water are intended to be based:
6.3.1 on meter readings from a Supply Meter to be provided by a Relevant Consumer but that Relevant Consumer has not provided a meter reading; or
6.3.2 on meter readings from a Supply Meter with smart functionality, but the authorised person, despite taking all reasonable steps, is unable to obtain a meter reading,
a Bill or Billing Information may be based on an estimate of consumption.
6.4 Without prejudice to paragraph 6.2 and subject to paragraphs 6.3 and 6.6, at least once a year, the authorised person must issue a Bill to each Relevant Consumer with a Supply Meter on the basis of actual rather than estimated consumption.
6.5 Where the authorised person considers that a meter reading provided by a Relevant Consumer is not reasonably accurate, the authorised person must take all reasonable steps to contact that Relevant Consumer to obtain a new meter reading.
6.6 Bills and Billing Information do not need to meet the requirements of paragraph 6.2 to the extent that such requirements are not reasonably practicable in all the circumstances of the case or where the Bills and Billing Information relate to a supply to a Relevant Consumer at any of the following premises:
6.6.1 supported housing, almshouse accommodation or purpose-built student accommodation; or
6.6.2 any premises that is subject to a leasehold interest where the lease:
(a) began before 27th November 2020; and
(b) contains a provision which would prevent Billing based on actual consumption,
unless the lease is varied, renewed, or comes to an end.
Charges for Bills and Billing Information
6.7 Subject to paragraph 6.8, the authorised person must not make a specific charge to a Relevant Consumer for the provision of a Bill or Billing Information other than in respect of the supply of additional copies of that Bill or that Billing Information.
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6.8 Where Bills and Billing Information relate to the supply of heating, cooling or hot water to a Relevant Consumer in a building occupied by more than one Relevant Consumer:
6.8.1 the authorised person's costs of providing such Bills and Billing Information may be passed on to those Relevant Consumers provided that no profit is made from such charges; or
6.8.2 where the authorised person has assigned the task of providing Bills or Billing Information to a third party the reasonable costs of providing them may be passed on to those Relevant Consumers.
Provision of Billing and Billing Information
6.9 The authorised person must:
6.9.1 supply a Relevant Consumer's Billing Information to an Energy Services Provider at the request of that Relevant Consumer;
6.9.2 provide electronic Billing and Billing Information at the request of a Relevant Consumer;
6.9.3 provide a clear explanation of the information contained in a Bill, including how the Bill was calculated and specifying fixed and variable elements; and
6.9.4 ensure that information and estimates of heating, cooling or hot water costs are provided to a Relevant Consumer promptly where requested, and in a format which enables a Relevant Consumer to compare their Charges over time and across the seasons.
6.10 Billing Information in relation to a Relevant Consumer means the following information:
6.10.1 current Charges charged to the Relevant Consumer by the authorised person;
6.10.2 information about the Relevant Consumer's consumption of heating, cooling or hot water (estimated where necessary);
6.10.3 where practicable, comparisons of the Relevant Consumer's current consumption of heating, cooling or hot water with consumption for the same period in the previous year, if possible displayed in a graph and using estimates of consumption where necessary, and estimates of the Charges the Relevant Consumer is likely to pay in future;
6.10.4 clear and accurate information for a Relevant Consumer on the terms for the supply of heating, cooling or hot water;
6.10.5 information on the availability of, and contact information for, the Relevant Consumer Advice Body;
6.10.6 contact information for:
(a) the authorised person supplying heating, cooling or hot water and any relevant
third-party billing agent;
(b) any Complaints from the Relevant Consumer; and
(c) the party responsible for handling any emergencies relating to the relevant heat
network;
6.10.7 information on energy saving for a Relevant Consumer;
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6.10.8 information on support mechanisms offered by the authorised person and fuel poverty charities;
6.10.9 the authorised person's identification number(s) allocated by the Authority (if any) in relation to the authorised person and/or its organisation; and
6.10.10 information about and contact details for the Energy Ombudsman,
and where such information is available and where reasonably practicable for the authorised person to include:
6.10.11 information on the fuel type and source of energy in use on the relevant heat networks by means of which the Relevant Consumer is supplied and the environmental impacts of energy generation used on such relevant heat networks;
6.10.12 information on how heat networks contribute to net-zero targets, with an explanation of how heat networks operate; and
6.10.13 a notice of monopoly supply together with an explanation of what this means for a Relevant Consumer.
Billing frequency and method
6.11 Where a Relevant Consumer has opted to receive electronic Billing or where a Relevant Consumer so requests, the authorised person must issue Billing Information at least quarterly. Otherwise, the authorised person must issue Billing Information at least twice a year and with every Bill issued.
6.12 Where the authorised person supplies a Relevant Consumer with a Supply Meter which provides automated meter reading functionality, the authorised person must take all reasonable steps to obtain a meter reading each month and bill accordingly.
6.13 Without prejudice to paragraphs 6.11 and 6.12, each Bill issued to a Relevant Consumer by the authorised person must cover the period agreed between them.
6.14 The authorised person must provide a Bill to a Relevant Consumer promptly following the end of each agreed period. The authorised person must provide a Relevant Consumer with not less than thirty-one (31) days' prior notice of any changes to planned Billing dates.
6.15 The authorised person must provide a Relevant Consumer it supplies with information about all available options for receiving Bills, having due regard to:
6.15.1 a Relevant Consumer's requirements, vulnerabilities or constraints as notified by a Relevant Consumer to the authorised person; and
6.15.2 the Equality Act 2010.
6.16 Any Bills or statements of account must either:
6.16.1 be provided in a Form that allows a Relevant Consumer to easily retain a copy; or
6.16.2 be made easily available to a Relevant Consumer for reference.
6.17 The authorised person must provide a choice of payment methods to a Relevant Consumer and not unreasonably refuse or delay switching a Relevant Consumer to another payment method requested by that Relevant Consumer.
Consumers using Prepayment Meters
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6.18 Where the authorised person supplies a Relevant Consumer using a Prepayment Meter, the authorised person must provide, at a minimum, an annual account statement.
6.19 The annual account statement issued pursuant to paragraph 6.18 must:
6.19.1 state the consumption by a Relevant Consumer of the heating, cooling or hot water supplied in the twelve (12) months immediately preceding the issuing of the annual account statement;
6.19.2 provide a projection of the Charges to the Relevant Consumer for supplying heating, cooling or hot water over the next twelve (12) month period if consumption remains consistent; and
6.19.3 provide the information required pursuant to paragraphs 6.10.1 to 6.10.13.
Part Two of this Condition
Billing based on actual consumption etc. where Supply Meters are installed
6.20 Paragraph 6.4 shall be deemed to read as if the words, "at least once a year", were replaced with the words, "at least once per Service Charge period" where the Charges to which the Bill relates are Service Charges.
6.21 Paragraph 6.6 shall be deemed to read as follows: Bills and Billing Information do not need to meet the requirements of paragraph 6.2 unless it is technically possible and economically justified for them to do so. It will be considered technically possible and economically justified to issue Bills and Billing Information to a Relevant Consumer where the estimated reasonable costs of issuing Bills and Billing Information to a Relevant Consumer does not exceed GBP100 per Relevant Consumer per calendar year unless the Relevant Consumer occupies:
(a) supported housing, almshouse accommodation or purpose-built student
accommodation; or
(b) any premises that is subject to a leasehold interest where the lease:
(i) began before 27th November 2020; and
(ii) contains a provision which would prevent Billing based on actual consumption, unless the lease is varied, renewed, or comes to an end.
6.22 The matters to be taken into account in estimating the cost of issuing Bills and Billing Information for the purposes of the above provision are the costs of:
6.22.1 collecting, storing and processing meter readings;
6.22.2 preparation and issuing of the Bill and Billing Information;
6.22.3 processing of payments; and
6.22.4 issuing of demands for payment if a Bill is not paid.
Charges for Bills and Billing Information
6.23 Paragraphs 6.7 and 6.8 shall not apply to the extent the Bill or Billing Information relates to Charges that are Service Charges.
6.24 The authorised person must not make a specific charge to a Relevant Consumer for the provision of a Bill or Billing Information relating to Charges that are Service Charges other
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than in respect of the supply of additional copies of that Bill or that Billing Information, provided always that nothing in this paragraph shall be construed as precluding a landlord from treating as part of their costs of management any costs incurred by them in connection with making those facilities so available.
Provision of Billing and Billing Information
6.25 Paragraph 6.9 shall not apply where the Charges to which the Bill or Billing Information relates are Service Charges, but the authorised person must:
6.25.1 supply a Relevant Consumer's Billing Information to an Energy Services Provider at the request of that Relevant Consumer;
6.25.2 provide electronic Billing and Billing Information at the request of a Relevant Consumer;
6.25.3 provide a clear explanation of the information contained in a Bill, including how the Bill was calculated; and
6.25.4 ensure that information and estimates of energy costs are provided to a Relevant Consumer promptly where requested, and in a format which enables a Relevant Consumer to compare their Charges over time.
6.26 Where the Charges to which the Billing Information relates are Service Charges, paragraph 6.10 applies subject to paragraphs 6.10.3 and 6.10.10 being read as follows:
6.10.3: where practicable, comparisons of a Relevant Consumer's current consumption of heating, cooling or hot water with consumption for the same period in the previous Service Charge period, if possible displayed in a graph, and estimates of the Charges a Relevant Consumer is likely to pay in future;
6.10.10: information about and contact details for the Housing Ombudsman.
Billing frequency and method
6.27 Where the Bills, Billing Information or payment method relate to Charges that are Service Charges, paragraphs 6.11, 6.13, 6.14 and 6.17 shall not apply.
6.28 Without prejudice to any other provision, each Bill issued to a Relevant Consumer by the authorised person in respect of Charges that are Service Charges must cover a period as determined pursuant to the terms of the relevant lease or agreement.
Consumers using Prepayment Meters
6.29 Paragraphs 6.18 and 6.19 shall not apply where the Charges that the Prepayment Meter relates to are Service Charges.
6.30 Where the authorised person supplies a Relevant Consumer using a Prepayment Meter where the Prepayment Meter relates to Charges that are Service Charges, the authorised person must provide, at a minimum, a statement which shall cover the Service Charge period as determined pursuant to terms of the relevant lease or agreement.
6.31 The statement issued pursuant to paragraph 6.30 must:
6.31.1 state the consumption by a Relevant Consumer of the heating, cooling or hot water supplied in the Service Charge period immediately preceding the issuing of the statement;
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6.31.2 provide a projection of the Charges to the Relevant Consumer for supplying 6.31.3 heating, cooling or hot water over the next Service Charge period if consumption remains consistent; and
provide the information required pursuant to paragraph 6.10, as modified by this Part Two.
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Does this apply to you?
Section B applies where heat is supplied to domestic consumers. If every consumer on your network is non-domestic, this condition does not apply. The registration checker works out your full set in a few questions. Registration closes on 26 January 2027.