Energy & Utilities

Energy compliance checklist

A confirmation checklist for energy businesses. Work through the cross-cutting duties every energy business shares, then the section for what you operate — electricity generation, electricity networks, gas networks and gas manufacture, energy supply, or heat, steam and air conditioning.

UK-wide
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UK-wide

Related guides in General Compliance

Grid Connection Agreement

All electricity generators connecting to the GB electricity network require a connection agreement with either NESO (National Energy …

Confirm the obligations that apply to your energy business are in place. Start with section 1, which applies to every energy business, then complete the section for what you operate — answer only the items for the activities you actually run. Where a duty differs by nation, the item says so. If you operate in Northern Ireland, your licences come from the Utility Regulator (UREGNI), not Ofgem — work through this checklist alongside the Northern Ireland licensing guide.

Section 1 — Every energy business

  1. 1

    Manage workplace health and safety

    Protect employees and others under the Health and Safety at Work etc. Act 1974 — in this sector that means treating major-hazard risk as core compliance work (Great Britain; HSENI enforces in Northern Ireland).

  2. 2

    Insure your employees

    At least £5 million employers' liability cover from an authorised insurer if you employ anyone — energy-sector insurers typically require £10 million or more (Great Britain; equivalent rules in Northern Ireland).

  3. 3

    Hold the right environmental permit

    Permit any activity with emissions to air, water or land — Environment Agency in England, NRW in Wales, SEPA in Scotland, NIEA in Northern Ireland. Large combustion plant needs IED-specific permits.

  4. 4

    Comply with the UK Emissions Trading Scheme

    If any installation exceeds the threshold (generally more than 20 MW thermal input), hold a greenhouse gas emissions permit, submit a verified annual report by 31 March and surrender allowances by 30 April.

  5. 5

    Check your COMAH position

    If a site holds dangerous substances — LNG, hydrogen, flammable gases — at or above threshold quantities, notify the competent authority, maintain a major accident prevention policy, and for upper-tier sites a safety report and emergency plan (Great Britain; Northern Ireland has parallel regulations).

Section 2 — Electricity generation

  1. 1

    Hold a generation licence or confirm your exemption

    Generators above 50 MW need an Ofgem generation licence; most under 50 MW qualify for a class exemption. Confirm which side you fall on — operating unlicensed without an exemption is a criminal offence. Northern Ireland licences come from UREGNI. Confirm against the electricity generation licensing guide.

  2. 2

    Hold a grid connection agreement

    Every generator exporting to the grid needs a connection agreement — with your Distribution Network Operator for smaller connections or NESO for transmission-scale projects.

  3. 3

    Check your planning consent route

    Onshore stations over 50 MW in England need a Development Consent Order; in Wales consenting up to 350 MW is devolved to Welsh authorities (onshore wind from 10 MW follows the Developments of National Significance route; above 350 MW, a DCO); in Scotland, section 36 consent from Scottish Ministers. Smaller projects need local planning permission.

  4. 4

    Register for the support schemes you use

    Accredit for Contracts for Difference (the Renewables Obligation is closed to new accreditation — existing accredited stations keep receiving certificates), register for REGO certificates, and consider Capacity Market participation — administered by Ofgem (RO, REGO), the Low Carbon Contracts Company (CfD) and NESO under DESNZ oversight (Capacity Market).

  5. 5

    Nuclear only — hold your site licence and liability cover

    Nuclear installations need an ONR site licence and third-party liability insurance. Confirm against the civil nuclear industry guide.

Section 3 — Electricity networks

  1. 1

    Hold the right network licence

    Transmission and distribution each need their own Ofgem licence; IDNOs need a distribution licence and ICPs need NERS accreditation (Great Britain — NIE Networks is regulated by UREGNI).

  2. 2

    Comply with the industry codes

    Transmission licence holders must comply with the Grid Code and CUSC, administered by NESO.

  3. 3

    Report under your RIIO price control

    Submit annual regulatory accounts and performance data to Ofgem under RIIO-T (transmission) or RIIO-ED (distribution).

  4. 4

    Meet guaranteed standards of performance

    DNOs must pay automatic compensation for supply interruptions beyond set durations and report interruption statistics to Ofgem annually.

Section 4 — Gas networks and gas manufacture

  1. 1

    Hold a gas transporter licence

    Conveying gas through pipes to premises needs an Ofgem gas transporter licence (the Gas Act 1986 does not extend to Northern Ireland).

  2. 2

    Have your safety case accepted before operating

    Gas transporters — and gas manufacturing processes connected to a network — must have a safety case explicitly accepted by HSE before conveyance or operations begin. There is no tacit consent.

  3. 3

    Manage pipeline major-accident duties

    Notify HSE of major accident hazard pipelines (above 7 barg) and maintain a Major Accident Prevention Document.

  4. 4

    Cooperate with the Network Emergency Co-ordinator

    Where more than one transporter shares a network, confirm the NEC arrangements and your duty to follow its directions in a supply emergency.

  5. 5

    Report under RIIO-GD

    Licensed gas distribution businesses submit annual regulatory accounts and performance data to Ofgem.

Section 5 — Energy supply and trading

  1. 1

    Hold the right supply licences

    Electricity supply and gas supply each need their own Ofgem licence; book gas transportation capacity under a shipper licence if you ship. Northern Ireland supply licences come from UREGNI.

  2. 2

    Join the industry codes

    Become a Balancing and Settlement Code party (electricity, with a Meter Operator and Data Aggregator appointed) and comply with the Uniform Network Code (gas).

  3. 3

    Keep domestic tariffs within the price cap

    Check every in-scope default and standard variable tariff against the quarterly Ofgem cap, for both fuels.

  4. 4

    Meet consumer-protection standards

    Meet guaranteed standards of service, handle complaints effectively, comply with Ofgem's Standards of Conduct, and report social obligations annually.

  5. 5

    Meet your renewable-scheme obligations

    Settle the Renewables Obligation with certificates or buy-out, pay the CfD supplier obligation levy — and offer a Smart Export Guarantee tariff if you have 150,000 or more domestic customers.

Section 6 — Heat, steam and air conditioning

  1. 1

    Prepare for heat network authorisation

    Track the Energy Act 2023 implementation timetable, prepare for Ofgem authorisation, and comply with the Heat Network (Metering and Billing) Regulations now (Great Britain).

  2. 2

    Maintain written schemes for pressure systems

    Hold a written scheme of examination for every steam boiler, pressure vessel and high-pressure main, with periodic competent-person examinations recorded (Great Britain).

  3. 3

    Hold F-gas certification

    Company certificate plus personal certificates for engineers handling fluorinated gases in cooling plant, with leak checks scaled to charge (GB regime).

  4. 4

    Meet building energy standards for installed plant

    Part L building-control compliance in England for notifiable heat and steam plant; Wales Part L, Scotland Section 6, Northern Ireland Part F.

  5. 5

    Certify CHP and run ESOS audits where they apply

    Register Good Quality CHP under CHPQA for Climate Change Levy relief (UK-wide), and complete ESOS energy audits every four years if you meet the large-undertaking thresholds (Phase 4 deadline 5 December 2027).

Related guides

The guides this checklist confirms, and the onward guides it routes to.