Comply as an energy supplier

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.