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
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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).
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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).
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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.
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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.
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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
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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.
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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.
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Check your planning consent route
In England, onshore wind and solar generating stations need a Development Consent Order above 100 MW — the threshold rose from 50 MW on 31 December 2025 under the Infrastructure Planning (Onshore Wind and Solar Generation) Order 2025. Other onshore generating stations keep the 50 MW threshold. 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, you need section 36 consent from Scottish Ministers. Smaller projects need local planning permission.
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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).
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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
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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).
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Comply with the industry codes
Transmission licence holders must comply with the Grid Code and CUSC, administered by NESO.
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Report under your RIIO price control
Submit annual regulatory accounts and performance data to Ofgem under RIIO-T (transmission) or RIIO-ED (distribution).
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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
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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).
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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.
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Manage pipeline major-accident duties
Notify HSE of major accident hazard pipelines (above 7 barg) and maintain a Major Accident Prevention Document.
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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.
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Report under RIIO-GD
Licensed gas distribution businesses submit annual regulatory accounts and performance data to Ofgem.
Section 5 — Energy supply and trading
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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.
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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).
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Keep domestic tariffs within the price cap
Check every in-scope default and standard variable tariff against the quarterly Ofgem cap, for both fuels.
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Meet consumer-protection standards
Meet guaranteed standards of service, handle complaints effectively, comply with Ofgem's Standards of Conduct, and report social obligations annually.
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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
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Comply with heat network authorisation
Ofgem regulation of heat networks went live on 27 January 2026 under the Heat Networks (Market Framework) (Great Britain) Regulations 2025. Existing operators and suppliers are deemed authorised and must already comply with the Authorisation Conditions, and must register their networks with Ofgem. Also comply with the Heat Network (Metering and Billing) Regulations (Great Britain).
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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).
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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).
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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.
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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).
Legal basis
Primary legislation and key regulations
Official guidance
Which energy rules apply to your business (opens in a new tab)
Run a compliant energy business (opens in a new tab)
Get an electricity generation licence (opens in a new tab)
Run an electricity network business (opens in a new tab)
Gas network and gas safety rules (opens in a new tab)
Comply as an energy supplier (opens in a new tab)
Run a heat network or steam supply business (opens in a new tab)
Working in the civil nuclear industry (opens in a new tab)
UK Emissions Trading Scheme (UK ETS) compliance (opens in a new tab)
COMAH Compliance for Chemical Sites (opens in a new tab)
Apply for an electricity or gas licence in Northern Ireland (opens in a new tab)