CO₂ reduction
Potential impact
5 grant applications supported
Potential saving of £979 per year per resident
Background
InCommunities, a large social housing provider, engaged FairHeat to undertake a portfolio review of 13 communal heat networks they operate in the North of England.
Portfolio reviews play a crucial role in helping heat network owners understand the condition of their assets, identify areas of non-compliance and determine where to focus investment and improvement efforts.
With regulations coming into effect across 2026/27, organisations need to understand where potential compliance gaps lie, understand their risk impact, and budget accordingly to avoid being caught out.
Without this clarity, heat network owners may not fully understand the costs associated with upgrading their portfolios to meet compliance, and risk unexpected costs and operational challenges in portfolios.
FairHeat conducted a high-level audit of each site, including:
- Energy centre assessments to identify asset condition, metering and data capture gaps, pressure sensors,
and water quality equipment. To align with draft Heat Network Technical Assurance Standard (also known as HNTAS) specifications. - Distribution network inspections, focusing on insulation quality, heat loss and opportunities for metering.
- Dwelling-level assessments to highlight feasibility of installing meters, quick wins, and bypass/insulation issues.
Challenge
The primary objective was to help the client understand:
- Areas of potential regulatory exposure.
- What interventions are require to mitigate risk of exposure.
- How to prioritise investment across the portfolio. Gain an understanding of the types,
sizes, condition and performance of their heat networks.
Before the review, key network data was limited or unknown, including:
- Full asset lists and age of equipment.
- Actual vs. expected heat losses.
- Pipework condition, routing and insulation- quality
- The client required a cost-effective, portfolio-wide assessment that would establish a clear
roadmap to support funding applications, capital works planning, and step by step
compliance costs.
FairHeat Solution
FairHeat delivered a structured portfolio review across all sites, providing a consistent evaluation framework and a clear strategy for next steps.
Proposed and Assessed Measures Included:
- Installation of energy centre and network meters.
- Water quality equipment upgrades.
- Targeted insulation improvements to reduce heat losses Network temperature reduction
strategies. - Categorisation of all networks based on compliance risk and required investment.
Portfolio Categorisation:
- 3 sites required extensive works and are unlikely to reach compliancewithout wider network
upgrades. - 7 sites required moderate or minor works, such as introduction of metering and water quality
improvements. - 3 sites were of a sufficiently small scale that they are not expected to be captured by the now
draft Heat Network Technical Assurance Standard, meaning no urgent interventions are needed.
However, we still provided recommendations to help reduce heat consumption.
Strategic Support
FairHeat also supported the client with:
- Development of a prioritised roadmap for compliance.
- Identification of funding opportunities, including Heat Network Efficiency Scheme
(HNES) revenue support & preparation for funding Round 11 optimisation study applications. - Translation of findings into actionable, site-specific and portfolio wide reports.
Result
The portfolio review provided the client with a clear, actionable understanding of how their networks
are performing, whether their networks are likely to be compliant, how to make them compliant
and investment priorities across their networks.
Key Outcomes Deleivered by FairHeat:
- 13 heat networks audited and reports delivered to clients within a three-month turnaround.
- Audits delivered at ~20% of the cost of full optimisation studies while still providing critical
information specific insights. - 100% of sites assessed were expected to need refurbishments to be Heat Network Technical
Assurance Scheme compliant. - Developed a prioritised strategy to target investment where it will have
the greatest impact. - Supported the client with 5 grant funding applications to the Heat Network Efficiency Scheme
for optimisation studies. - Taken steps to support 396 residents in at-risk buildings benefit from
future improvements.
Potential impact if recommendations are implemented:
- 1,384,614 kWh/year of heat saved equivalent to the annual gas heating consumption of 120 homes (Ofgem).
- £979/year per resident potential cost savings.
- 390,000 kg CO2/year reduction- equivalent to 5,500 return journeys in an average UK car between FairHeat’s London office and Sheffield. Significant improvements in reliability, data visibility, and customer satisfaction.
Client Feedback
“Incommunities chose to undertake a portfolio review with FairHeat following the completion of optimisation studies at two of our established heat networks. These optimisation studies were completed with the view of better understanding our heat networks with regards ultimate compliance with the Heat Network Technical Assurance Scheme (HNTAS). The optimisation studies were funded by the Heat Network Efficiency Scheme (HNES) and painted a picture of significant investment being required.
Learnings & commercials from the HNES studies were translated to other heat networks across our portfolio which built a business case report, increasing understanding & visibility of the impending HNTAS requirements, along with the potential connotations for Incommunities.Given our moderate heat network portfolio size, age & characteristics we saw the need to conduct a wider scaled, more general review of our heat networks to refine our understanding of HNTAS compliance at each of our 15 networks. FairHeat were the natural commissioning choice follow successful HNES delivery. Incommunities saw instant justification in choosing FairHeat, with the outcomes of the review being brought to life in January 2026, a needle to thread timeframe spanning only three months. The portfolio review has led to an overall better understanding of the ballpark commercials of HNTAS compliance for Incommunities & a further HNES optimisation application for those networks most in need of improvement works.”
Gareth Wright
Sustainability Manager,
Incommunities Ltd
