How the Heat Network Tariff Calculator Works

The Heat Network Tariff Calculator guides you through a 6-step process to calculate a fair, compliant heat tariff for your UK heat network. The calculator adapts based on your available data — whether you have heat meter readings, gas consumption figures, or just your gas bills.

Step-by-Step Process

  1. Tell us about your network — system type, number of properties, and property types
  2. Enter your energy source data — heat output, gas consumption, or gas bills
  3. Add your fixed costs — capital repayment, maintenance, insurance, and allowed return
  4. Enter energy costs — gas and electricity unit rates for variable cost calculation
  5. Counterfactual comparison — automatic check against individual gas boiler costs
  6. Review and report — see your standing charge, unit rate, and download a board-ready PDF

The tool calculates your standing charge (pence per day) and unit rate (pence per kWh) based on your actual costs. It then compares your tariff against what customers would pay with their own gas boiler to ensure compliance with Ofgem fair pricing principles under the Heat Networks (Market Framework) Regulations 2025.

Visit Heat Network Compliance for comprehensive guidance on Ofgem authorisation. Read the Ofgem Authorisation Guide for pricing obligations under Authorisation Conditions A7 and A8.

How the Heat Network Tariff Calculator Works

The Heat Network Tariff Calculator guides you through a 6-step process to calculate a fair, compliant heat tariff for your UK heat network. The calculator adapts based on your available data — whether you have heat meter readings, gas consumption figures, or just your gas bills.

Step-by-Step Process

  1. Tell us about your network — system type, number of properties, and property types
  2. Enter your energy source data — heat output, gas consumption, or gas bills
  3. Add your fixed costs — capital repayment, maintenance, insurance, and allowed return
  4. Enter energy costs — gas and electricity unit rates for variable cost calculation
  5. Counterfactual comparison — automatic check against individual gas boiler costs
  6. Review and report — see your standing charge, unit rate, and download a board-ready PDF

The tool calculates your standing charge (pence per day) and unit rate (pence per kWh) based on your actual costs. It then compares your tariff against what customers would pay with their own gas boiler to ensure compliance with Ofgem fair pricing principles under the Heat Networks (Market Framework) Regulations 2025.

Visit Heat Network Compliance for comprehensive guidance on Ofgem authorisation. Read the Ofgem Authorisation Guide for pricing obligations under Authorisation Conditions A7 and A8.