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Energy & Utilities
Energy and utilities
UK-wide
Electricity Supply Licence
Businesses supplying electricity to consumers in Great Britain require a Supply Licence from Ofgem.
Guide summary
You need a Supply Licence from Ofgem to sell electricity to consumers in Great Britain, unless you qualify for a Class A exemption for self-supply up to 5MW. Prepare your business plan, show you can meet industry rules, and submit your application. Allow 6 to 12 months for assessment and pay at least £1,500.
- Check if you qualify for Class A exemption (self-supply up to 5MW, max 2.5MW domestic)
- If not exempt, apply for a Supply Licence from Ofgem
- Prepare a detailed business plan and financial projections
- Show you can meet supplier hub and industry code requirements
- Submit your application with supporting documents
- Allow 6 to 12 months for Ofgem to assess your application
- Pay application fee of £1,500 or more
- Meet requirements for financial resilience, customer service, vulnerability support, and smart meters
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Who needs a supply licence
You need a Supply Licence to sell electricity to consumers unless you qualify for a Class A exemption (supplying up to 5MW of self-generated power, with maximum 2.5MW to domestic consumers).
Supply Licence holders must meet stringent financial, operational and consumer protection requirements including:
- Financial resilience and ring-fencing arrangements
- Customer service standards
- Vulnerability support obligations
- Smart meter rollout requirements
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1
Assess Class A exemption
Assess whether Class A exemption applies (self-supply up to 5MW)
-
2
Prepare business plan
If licence required, prepare detailed business plan and financial projections
-
3
Demonstrate industry code capability
Demonstrate capability to meet supplier hub and industry code requirements
-
4
Submit application to Ofgem
Submit application to Ofgem with supporting documentation
-
5
Allow assessment time
Allow 6-12 months for assessment and determination