Caldora Compliance
Condition C1

Operator Standards of Conduct

Condition C1, Operator Standards of Conduct, is one of the 29 Ofgem heat network authorisation conditions. It applies to operators of a heat network, and is set out at Section C, Condition 1 of Ofgem’s Heat Network Authorisation Conditions decision of January 2026. Registration with Ofgem closes on 26 January 2027.

Section C, Condition 1Section C — Operating conditionsCritical

What this condition requires

The consumer objective for operators is that consumers and occupants of domestic premises connected to a network you operate are treated Fairly — and, insofar as affected or capable of being affected by your activities, so are those connected to another relevant heat network connected directly or indirectly to yours (1.1). You must achieve the operator standards of conduct consistently with that objective (1.2). The standards are that you behave and act in a Fair, honest, transparent, appropriate and professional manner (1.3.1); provide such information and co-operation to another authorised person as it may reasonably request so it can carry out its obligations under the Regulations or the conditions (1.3.2); have appropriate resources and processes in place for effective co-operation with any other authorised person whose regulated activities may be affected by yours (1.3.3); and, where a complaint is referred to you by the authorised person acting as single point of contact for it, use all reasonable endeavours to assist (1.3.4). Conflict rules with other conditions are in 1.4.

Applies to

Every operator. A more specific fair treatment condition, including A6, takes priority (1.4).

Core requirement

The operator must treat consumers on the networks it operates, and connected networks, fairly, and co-operate with other authorised persons, including on referred complaints.

Key obligations

1.1, the consumer objective for operators. 1.2, achieve the operator standards of conduct. 1.3, fair conduct, information and co-operation for other authorised persons, and referred complaints resolved under the referring person's procedure.

Evidence Ofgem will look for

  • A process for giving information to suppliers and other authorised persons
  • Co-operation on complaints referred to the operator
  • Resourcing sufficient for effective co-operation

Why this matters

Where a contractor exercises operating control alongside the authorised person, both are treated as operating and both carry these duties. A failure to co-operate with the supplier on the same network is the operator's exposure.

The condition in full

Reproduced from Ofgem’s Heat Network Authorisation Conditions decision, January 2026, Appendix 2.

Consumer Objective for Operators

1.1 The objective of this condition is for the authorised person to ensure that:

1.1.1 each person who is a Consumer in relation to, and/or an occupant of a Domestic Premises which is connected to, a relevant heat network which the authorised person operates; and

1.1.2 insofar as affected (or capable of being affected) by its activities, each person who is a Consumer in relation to, and/or an occupant of a Domestic Premises which is connected to, another relevant heat network connected directly or indirectly to the relevant heat network which the authorised person operates, is treated Fairly ("the consumer objective for operators").

Achieving the Operator Standards of Conduct

1.2 The authorised person must ensure it achieves the operator standards of conduct in a manner consistent with the consumer objective for operators.

1.3 The "operator standards of conduct" are that the authorised person:

1.3.1 behaves and carries out any actions in a Fair, honest, transparent, appropriate and professional manner;

1.3.2 provides such information and co-operation to another authorised person as may reasonably be requested in order that any such other authorised person is able to effectively and efficiently carry out or fulfil obligations imposed on it by or under the Regulations or the authorisation conditions;

1.3.3 ensures that it has appropriate resources and processes in place to enable effective co-operation with any other authorised person whose regulated activities may be affected by its regulated activities; and

1.3.4 without prejudice to the generality of paragraphs 1.3.2 and 1.3.3, where a Complaint is referred to the authorised person by another authorised person (being the authorised person with responsibility under its authorisation conditions for acting as the single point of contract in relation to the Complaint in question), the authorised person must use all reasonable endeavours to fully investigate and resolve the relevant Complaint in an efficient and timely manner in co- operation with the referring authorised person (and any other authorised person where relevant) and in accordance with the referring authorised person's Complaints Handling Procedure.

Scope of condition

1.4 If there is any conflict or inconsistency between this authorisation condition and another authorisation condition (including authorisation condition A6 (Fair Pricing)) which deals with a specific aspect of the Fair treatment of persons who are Consumers and/or occupants of a Domestic Premises, the latter will take priority.

Does this apply to you?

Section C applies to the operator of the network. If another party operates it and you only supply heat over it, this condition is theirs rather than yours. The registration checker works out your full set in a few questions. Registration closes on 26 January 2027.