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Energy & Utilities
Energy and utilities
Electricity Supply Licence
Businesses supplying electricity to consumers in Great Britain require a Supply Licence from Ofgem.
UK-wide
Guide summary
You need a licence from Ofgem to sell electricity to customers in Great Britain. If you generate and supply your own electricity (up to 5MW, with a maximum of 2.5MW to homes), you might be exempt. The application takes 6-12 months and costs at least £1,500.
- Apply to Ofgem for a Supply Licence to sell electricity
- Allow 6-12 months for your application to be processed
- Pay a £1,500+ application fee
- Check if you qualify for a Class A exemption first
- Class A exemption allows self-supply up to 5MW
- Maximum 2.5MW can be supplied to domestic customers
- You cannot buy and resell electricity under the exemption
- Prepare a detailed business plan for your application
- Show you can meet industry code requirements
- Meet financial and customer service standards
- Ring-fencing rules apply to large banks with deposits over £25bn
On this page
UK-wide
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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
-
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
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5
Allow assessment time
Allow 6-12 months for assessment and determination