Energy & Utilities

Comply as an energy supplier

Selling electricity or gas to customers over the public networks is a licensed activity with heavyweight ongoing obligations. Beyond getting the Ofgem supply licence, you must join the industry codes — the Balancing and Settlement Code for electricity, the Uniform Network Code for gas — keep domestic tariffs within the quarterly price cap, meet Ofgem's standards of conduct, and meet the renewable-scheme obligations: the Renewables Obligation, the Contracts for Difference levy and, for larger suppliers, the mandatory Smart Export Guarantee. Ofgem can fine suppliers up to 10% of turnover for licence-condition breaches.

UK-wide
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UK-wide

Related guides in General Compliance

Energy compliance checklist

A confirmation checklist for energy businesses. Work through the cross-cutting duties every energy business shares, then the section …

Energy supply is one of the most intensively regulated retail activities in Great Britain. The licence is the entry ticket; the real compliance work is ongoing — industry codes, the price cap, consumer-protection standards and renewable-scheme obligations, all enforced by Ofgem with penalties of up to 10% of turnover. These regimes are GB-wide; in Northern Ireland supply licences come from the Utility Regulator (UREGNI) — see applying for an electricity or gas licence in Northern Ireland.

Get the right licences

Supplying electricity or gas to customers over the public networks each needs its own Ofgem licence, and many gas suppliers also hold a shipper licence to book transportation capacity.

For the application process step by step, follow apply for an electricity supply licence and gas supply and shipper licensing.

Join and comply with the industry codes

Licensed suppliers must operate within the industry codes that govern how energy is balanced, settled and transported.

Keep domestic tariffs within the price cap

If you have domestic customers on default or standard variable tariffs, the quarterly Ofgem price cap applies to both your electricity and gas tariffs, alongside guaranteed standards of service, complaint handling and Ofgem's Standards of Conduct.

Meet your renewable-scheme obligations

Electricity suppliers fund the renewable support schemes: meet the Renewables Obligation with certificates or the buy-out price, and pay the Contracts for Difference supplier obligation levy.

Suppliers with 150,000 or more domestic customers must also offer a Smart Export Guarantee tariff to small-scale renewable generators.

For the generator's side of the Smart Export Guarantee, see get paid for renewable electricity you generate.

Next steps

Put the duties every energy business shares in place with run a compliant energy business, and confirm your position with the energy compliance checklist.