The 29 authorisation conditions, by role
Based on verified entries in our requirements register (v0.3.1), reviewed 1 November 2026. Every row cites the general authorisation conditions (Ofgem decision of 13 January 2026, Appendix 2), in effect since 27 January 2026.
The conditions come in three sections, and condition A1 says who each section binds:
- Section A (A1–A15) applies to every authorised person, for each regulated activity carried on, except where a condition says otherwise.
- Section B (B1–B12) applies to those supplying heating, cooling or hot water to consumers — but not where supply is only by means of Industrial Heat Networks or Self-Supply Networks.
- Section C (C1–C2) applies to those operating a network, with the same carve-out for industrial and self-supply networks.
Two cross-cutting points from the condition text:
- Local authorities and registered providers of social housing (Excepted Companies) are outside the financial-resilience conditions: A12 (scope paragraph 12.8), A13 (13.4) and A14 paragraphs 14.1–14.8 (14.10). The exception is A14 14.9 — the operator’s duty to keep arrangements to continue supply if a separate supplier fails — which paragraph 14.10 does not disapply for anyone.
- “Relevant Consumer” in the Section B conditions means domestic, microbusiness and small business consumers; where a condition is narrower (for example domestic only), its text says so (definitions in condition A3).
Section A — all authorised persons
| Condition | What it requires | Operator | Supplier |
|---|---|---|---|
| A1 Application | Says who each section binds (above); comply with the conditions relevant to each activity you carry on | ● | ● |
| A2 Interpretation / A3 Definitions | Interpretation rules and defined terms; no free-standing obligations | ● | ● |
| A4 Registration | Register each regulated activity by 26 January 2027, with the information the arrangements require — see our registration guide | ● | ● |
| A5 Nominated Operator | Where several operators share a network: agree and notify a contact-point operator who relays information both ways | ● | — |
| A6 Fair Pricing | Charges must be fair and not disproportionate (not industrial or self-supply networks) | ● | ● |
| A7 Cost Allocation | Structure and attribute charges to costs consistently with fair outcomes; never recover penalties, redress or compensation through charges (not industrial or self-supply) | ● | ● |
| A8 Ongoing Fit and Proper | No unfit person in an SMRI role; governance to confirm fitness; regular reassessment against the 8.3 factors | ● | ● |
| A9 Provision of Information | Provide information Ofgem requests, in the form and time required; right to comment before publication (information duties sit alongside the data reporting guidance) | ● | ● |
| A10 Open and Co-operative | Be open and co-operative; proactively self-report what Ofgem would expect to know; maintain compliance resources, risk management and a regulator contact point; have regard to guidance | ● | ● |
| A11 Independent Audits | Commission a required audit without delay; co-operate fully; senior management considers the report within four weeks and records decisions | ● | ● |
| A12 Operational Arrangements and Material Assets | Safeguard continuity: enforceable, transferable rights over Material Assets; no security or disposal creating undue continuity risk; keep a Material Asset register from 26 January 2027 (not LAs, social housing providers, industrial or self-supply) | ● | ● |
| A13 Availability of Resources | Secure the resources each activity needs; meet liabilities under stress; manage risks; ring-fence consumer-collected maintenance funds; notify Ofgem immediately if resources fall short (same exclusions as A12) | ● | ● |
| A14 Continuity Arrangements | Keep an up-to-date continuity plan from 26 January 2027 with what a successor would need (14.1–14.8: same exclusions as A12; 14.9 applies to every operator) — see our financial resilience guide | ● | ● |
| A15 Revocation | Consequences of revocation events (context for governance documents) | ● | ● |
Section B — suppliers
All Section B conditions bind suppliers to consumers; none apply where supply is only on industrial or self-supply networks (A1). Summaries reflect the condition text entries in our register:
| Condition | What it requires |
|---|---|
| B1 Supplier Standards of Conduct | Fair, honest, transparent, appropriate, professional treatment — including through representatives; complete and accurate consumer information; accessible customer service; identify and support vulnerable consumers; proactive outage communication; co-operation with other authorised persons |
| B2 Heat Supply Contracts | Offer to supply Relevant Consumers on request; written plain-language contracts with required contents; deemed-contract consumers told their Principal Terms; no unduly onerous terms; domestic contracts end on leaving; notice capped at 30 working days; bring existing contracts into line |
| B3 Contract Changes Information | At least 31 days’ notice of disadvantageous changes or price rises, as a separate document; no more than one price increase in six months (by paragraphs 3.6 and 7.3, the price-rise notice, six-month limit and 12-month back-billing bar do not apply to Service Charges — an unsettled boundary; see our position notes) |
| B4 Complaints | Maintain, publicise and follow a Complaints Handling Procedure; record complaints electronically; vulnerability taken into account; third-party referral arrangements; referral notice at deadlock, 8 or 12 weeks; qualified staff; five-year records |
| B5 Assistance and Advice | Information on help and dispute resolution; enquiry service with suitable channels and a 24-hour interruption line; prioritise vulnerable callers; free for those in payment difficulty; publish and provide advice-body publications annually |
| B6 Billing and Price Transparency | Accurate bills from actual consumption where metered; at least one actual-reading bill a year; monthly where automated reading exists; required billing information at set frequencies; no charge for bills; payment-method choice |
| B7 Back-billing | No charging for consumption more than 12 months old for domestic and microbusiness consumers; contract terms must comply (Service Charges carve-out, paragraph 7.3) |
| B8 Priority Services Register | Establish, promote and maintain a PSR; identify eligible consumers and offer registration; share minimum details within data protection law; priority services free of charge |
| B9 Security Deposits, Payment Difficulties, Disconnections and Direct Debits | Deposits only where reasonable; free payment-difficulty services; proactive contact after missed payments; instalments based on ability to pay; no disconnection for debt before prepayment recovery pursued; no winter disconnection of vulnerable households; direct debits explained, based on best information, credit refunded on request |
| B10 Prepayment Meters | Information before installation or switching; only where safe and reasonably practicable; annual suitability reassessment; strict conditions and vulnerability assessment for involuntary switching, none in winter for protected households; prompt meter resets; proportionate debt recovery |
| B11 Self-Disconnection | Identify self-disconnection and offer support; emergency and friendly-hours credit; additional support credit for vulnerable households; repayment on ability-to-pay terms |
| B12 Social Obligations Reporting | Report social obligations data to Ofgem and consumer advice bodies |
Section C — operators
| Condition | What it requires |
|---|---|
| C1 Operator Standards of Conduct | Achieve the operator standards consistently with the consumer objective: behave fairly, honestly, transparently, appropriately and professionally; provide information and co-operation to other authorised persons; investigate and resolve complaints the supplier refers |
| C2 Security of Supply | Maintain the network to good industry practice and repair promptly; periodically review reliability and upgrade where needed; monitor and report network performance and address issues promptly |
Reading the table for your organisation
Most real organisations hold both roles — a housing provider that runs the plant room and bills residents is operator and supplier at once, and both Section B and Section C apply. Vertical separation (council operator, ESCo supplier) splits the sections but adds co-operation duties on each side (B1 1.3.7–1.3.9; C1 1.3.2–1.3.4; A14 14.9). Our packs are assembled by role and sector variant, with a condition coverage map showing which document satisfies which condition for you — see products.
This guide is a plain-English summary, not legal advice — see the disclaimer.