In property management, delivering reliable heating and hot water is a fundamental part of what makes a building liveable. From keeping homes warm in winter, providing cooling in the summer, and ensuring reliable hot water year-round, the energy centres that generate and deliver these services must be effectively managed.
With the introduction of the Energy Act 2023, the way property management companies oversee these systems is undergoing a significant transformation.
Stuart Wilcox, Head of Critical Infrastructure at FirstPort, explains: “The Energy Act 2023 is a game-changer for energy management. It sets a new standard for performance, fairness, efficiency and transparency for customers, while driving towards the UK sustainability goals.
“The Act provides an opportunity to set standards and ensure owners and operators are accountable for the delivery and efficiency of communal heat networks in a way never seen before. For property managers, this also means rethinking how we operate, monitor and communicate about the energy centres, and networks we manage.”
What is the Energy Act 2023?
The Energy Act 2023, now in force across England, Scotland and Wales, is designed to make energy centres more efficient, transparent and aligned with the UK’s net zero targets.
An energy centre generates and distributes heating, hot water and sometimes cooling from a central point, supplying multiple homes via a network of insulated pipes. The fuel sources can vary from gas, electricity, even biomass.
Under this legislation, Ofgem has been appointed as the official regulator for communal heat networks. Those that own and operate energy centres, such as building freeholders and Resident Management Companies (RMCs), are required to register each energy centre with Ofgem by the end of 2025, and property management companies can support with managing the end-to-end process.
These centres will then be brought under the Heat Network Technical Assurance Scheme (HNTAS) from January 2026, which sets clear expectations around data capture, performance monitoring and compliance.
“Managing energy centres efficiently has always been important for ensuring cost control and customer satisfaction,” Stuart explains. “But now, with the Energy Act in place, it’s also a regulatory obligation for building owners. That’s a big shift for our industry.
“At FirstPort, we have over 100 energy centres within our portfolio that will fall under HNTAS. We are coordinating with our clients to ensure these are registered both with the Energy Omubsdman and Ofgem as we prepare all our heat and cooling networks for reporting under the regulator.”
The challenges and opportunities
“Historically, many poorly performing energy centres can be the result of outdated designs or limited ability to measure the system’s performance,” explains Stuart. He adds: “Within the operational phase, engineers often focus on the asset in front of them, rather than understanding how each part affects the overall system performance, so over time the system performance can decline.
“This is the first time we’ve seen real accountability built into legislation at this scale. It gives us the tools to improve what hasn’t been working and futureproof what already is.”
The Act also unlocks potential for system upgrades. “Where systems are structurally sound, we now have the ability to swap out legacy equipment for high-efficiency, low-carbon technology,” explains Stuart.
However, cost remains a significant challenge. Stuart adds: “Poorly performing schemes often drain financial reserves, which makes it even harder to invest in improvements. With heat networks not currently covered under Ofgem’s Default Tariff Price Cap, making sure a system is working efficiently, and therefore as cost effectively as possible, is even more critical.”
Some residents ask whether individual electric heating could be an alternative to network connections, but Stuart explains: “In most cases, blocks just don’t have the electrical infrastructure to support that kind of demand. In many cases, upgrading the system we already have is not only more practical – it’s the only reasonable option.”
A property management company’s role
Although the Energy Act puts the onus on the property owner, the property management company must be able to demonstrate its ability to manage the energy centres on their behalf.
At FirstPort, managing energy is not just about keeping systems running, it’s about delivering a dependable service that residents can trust. That starts with fully understanding the process from fuel procurement, energy centre management, metering and billing, and lifecycle planning.
“Our teams need to know what fuel is being used, how much it costs, how efficiently it’s being burned, and how the heat or cool air is distributed,” says Stuart. “That’s how we keep costs down and ensure systems are performing as they should.”
What does this mean for RMCs?
For Resident Directors, the legislation introduces new responsibilities. Understanding the compliance process, tracking system performance, and dealing with billing accuracy can be complex, and that’s where property managers like FirstPort can support.
“We have the technical knowledge to support Resident Directors to meet their legal obligations with confidence,” says Stuart. “For example, Energy Centres and networks are complex, and our technical teams are already aligning our Smart Building systems with the new requirements to make sure the transition is seamless for our clients.”
A new era of compliance and accountability
Once an energy centre is registered with Ofgem and brought under the HNTAS, property managers will work towards a compliance timeline, making sure their clients meet the necessary obligations set out in the Act. In some cases, this may involve upgrading equipment or metering systems to meet new standards and build upon existing heat network metering and billing regulations.
“This legislation isn’t just about reporting, it’s about investing in better infrastructure, improving performance, reliability, cost effectiveness and consumer protections,” Stuart adds. “We’re preparing now to make sure we meet those requirements and continue delivering reliable services to our customers.”
What’s next?
The Energy Act marks a critical step forward for consumers. For companies like FirstPort, it is investing, informing, and adapting so that customers continue to receive the essential services they rely on.
Looking for a property management partner you can rely on? Get in touch today to find out how FirstPort can support you.
firstport.co.uk | 01582 393756
