As of 27 January 2026, Ofgem officially regulates heat networks across Great Britain. That covers communal and district heating systems, including those powered by biomass boilers running on wood chip, wood pellets or briquettes.
Alongside this, the government has published the Heat Network Technical Assurance Scheme (HNTAS), which sets out mandatory engineering standards for both new and existing systems. If you operate a heat network, even a relatively small one in a single building, it is worth understanding what is changing and how your fuel supply fits in.
What HNTAS actually requires
HNTAS draws on CIBSE CP1 guidelines and turns what used to be best practice into auditable, enforceable requirements. The scheme is being phased in, but the direction is clear: heat networks will need to prove they are properly designed, maintained and monitored.
Four areas are getting the most attention.
First, temperatures and hydraulics. Operators will need to demonstrate lower primary flow temperatures, stable temperature differentials and responsive substation controls. In simple terms, the system needs to run efficiently and not waste heat.
Second, insulation and distribution. Verified insulation standards on mains, risers and laterals will be required to cut distribution losses. Poor insulation means wasted energy, higher costs and uncomfortable buildings.
Third, metering and billing. Calibrated meters, reliable data and transparent billing are all part of the new baseline. This applies across customer types, including non-domestic and microbusiness tenants.
Fourth, commissioning and monitoring. Systems will need evidence-based commissioning with measurable acceptance tests, followed by routine performance monitoring.
Why fuel quality matters when it comes to heat network regulation
Tighter regulation on system efficiency puts more pressure on the fuel going into the boiler. If a biomass heating system is being held to strict performance and emissions standards, the wood chip or pellets feeding it need to be consistent, clean and properly dried.
Fuel with excessive moisture content reduces combustion efficiency, increases ash production and can lead to more frequent boiler maintenance. Under the new regime, where operators are expected to report on system performance and demonstrate compliance, unreliable fuel is a liability.
This is where working with a BSL-approved supplier makes a real difference. At Woodyfuel, we supply wood chip at an optimal moisture content of 20% (plus or minus 4%), which gives your system the best chance of running at peak efficiency with minimal downtime. Our fuel is uniform, free from contamination and matched to your boiler’s specification.
Fuel quality is becoming even more important as UK wood pellet consumption is forecast to increase by 4% in 2026. Although most national demand comes from large power stations, changes in the wider pellet market can still influence supply, transport and availability for commercial biomass-heating customers.
What operators should be doing now
If you manage a building or site with a biomass heat network, there are a few practical steps worth taking sooner rather than later.
Start by reviewing your current setup. Map out every system you operate, who supplies it, what fuel it runs on and whether your metering is accurate. Ofgem’s registration process will require this information, and getting ahead of it avoids a scramble later.
Look at your fuel supply agreement. If your current supplier cannot guarantee consistent quality, moisture content and delivery schedules, that gap will show up when performance data is being reported to Ofgem.
Check your insulation and controls. Lowering flow temperatures and retuning substation controls can reduce losses straight away. These quick wins also make your system look better on paper when compliance reporting begins.
Finally, get your billing and tariff documentation in order. Fair pricing and transparent cost allocation are part of the new standards, and disputes with tenants or occupiers are likely to attract scrutiny.
Scotland is moving too
The Scottish Government has published a draft bill covering heating performance and heat networks, with a consultation expected in early 2026. Licensing conditions for installation and maintenance are on the horizon, and zonal connection duties could follow. If you operate biomass systems in Scotland, it is worth engaging early through Local Heat and Energy Efficiency Strategies (LHEES).
What changes in heat network regulation mean for Woodyfuel customers
For businesses already working with us, the good news is that our supply chain is built around exactly the kind of consistency and compliance that the new regulations demand. BSL-approved fuel, controlled moisture content, clean processing and reliable delivery schedules all feed directly into a well-performing, well-documented heat network.
If you are reviewing your biomass fuel supply as part of preparing for Ofgem regulation, we would be happy to talk through your requirements. Whether it is wood chip, pellets, briquettes or site clearance and brash chipping, we can help you keep your system running efficiently and your compliance paperwork straightforward.
Get in touch at 03333 447234 or have a look at our Services page to find out more.
