Guide
Apply for an electricity or gas licence in Northern Ireland
Step-by-step guide to applying to UREGNI for an electricity or gas licence in Northern Ireland. Covers the different licence types for electricity (generation, transmission, distribution, supply) and gas (supply, conveyance, storage), what UREGNI requires from applicants, the application process and timescales, and the criminal offence of operating without a licence.
You need a licence from UREGNI (the Utility Regulator) to carry out most electricity or gas activities in Northern Ireland. It is a criminal offence to generate, transmit, distribute, or supply electricity, or to supply, convey, or store gas, without the appropriate licence. This applies to any person or company — there are no exemptions based on business size.
UREGNI issues licences under the Electricity (Northern Ireland) Order 1992 and the Gas (Northern Ireland) Order 1996. The licensing regime is separate from Ofgem's licensing in Great Britain. A GB licence does not authorise you to operate in Northern Ireland.
Electricity licence types
UREGNI issues four categories of electricity licence under the Electricity (Northern Ireland) Order 1992:
- Generation licence: Required to generate electricity for the purpose of supply to any premises. This includes conventional power stations, wind farms, solar farms, and other renewable generation. Small-scale generation below certain thresholds may be exempt — contact UREGNI to confirm
- Transmission licence: Required to participate in the transmission of electricity. In practice, this is held by SONI (System Operator for Northern Ireland) and NIE Networks
- Distribution licence: Required to distribute electricity through a distribution system. Currently held by NIE Networks for the NI distribution network
- Supply licence: Required to supply electricity to customers. If you wish to sell electricity to end consumers in Northern Ireland, you need a supply licence
Most new market entrants apply for either a generation licence (to build and operate a power station or renewable energy facility) or a supply licence (to retail electricity to consumers).
Gas licence types
UREGNI issues three categories of gas licence under the Gas (Northern Ireland) Order 1996:
- Supply licence: Required to supply gas to any premises through a pipeline. If you wish to sell gas to end consumers, you need this licence
- Conveyance licence: Required to convey gas through a pipeline system. The main licence holders are the gas network operators (firmus energy distribution, SGN Natural Gas, Phoenix Natural Gas)
- Storage licence: Required to store gas in a storage facility
How to apply for a licence
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1. Confirm which licence type you need
Identify the specific activity you intend to carry out and match it to the appropriate licence category. If you are unsure, contact UREGNI directly. Some activities may require more than one licence — for example, a vertically integrated energy company might need both generation and supply licences.
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2. Review the licence conditions
Before applying, review the standard licence conditions published on the UREGNI website. Each licence type has specific conditions covering financial requirements, consumer protection obligations, reporting duties, and market participation rules. Understanding these conditions before you apply helps you assess whether your business can meet the ongoing obligations.
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3. Prepare your application
UREGNI requires detailed information about your business, including corporate structure and ownership, financial standing and resources, technical capability, details of the proposed activity (location, capacity, target market), and evidence that you can meet the licence conditions. For electricity generation, include details of the generating station, fuel type, and installed capacity.
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4. Submit your application to UREGNI
Send your completed application to UREGNI's licensing team. There is no standard application form — UREGNI assesses each application on its merits. Write to the Utility Regulator at Queens House, 14 Queen Street, Belfast BT1 6ED, or contact the licensing team via the UREGNI website to discuss your application before formal submission.
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5. UREGNI assessment and consultation
UREGNI will assess your application against its licensing criteria. For new supply licences, UREGNI may consult with existing licensees and other stakeholders. The assessment period varies depending on the complexity of the application and the licence type. Allow several months for the full process. UREGNI may request additional information during the assessment.
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6. Licence grant and conditions
If UREGNI is satisfied that you meet the criteria, it will grant the licence with specific conditions attached. These are legally binding. You must comply with all licence conditions from the date of grant. UREGNI publishes all granted licences and their conditions on its website.
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7. Meet ongoing compliance obligations
Once licensed, you must comply with ongoing obligations including annual reporting to UREGNI, participation in relevant market codes and arrangements, consumer protection requirements, and any financial ring-fencing conditions. UREGNI monitors compliance and can take enforcement action for breaches.
Criminal offence to operate without a licence
Article 8 of the Gas (Northern Ireland) Order 1996, it is a <strong>criminal
offence</strong> to carry out licensable activities without the appropriate
licence from UREGNI.</p>
<p>Conviction can result in a fine. UREGNI also has powers to seek injunctions
to prevent unlicensed activity. There are limited statutory exemptions for
certain small-scale activities, but these are narrowly defined — do not assume
you are exempt without confirming with UREGNI.</p>
UREGNI enforcement powers
UREGNI has a range of enforcement powers for licence holders who breach their conditions:
- Enforcement orders: UREGNI can issue orders requiring a licensee to comply with a condition or to take specific remedial action
- Financial penalties: UREGNI can impose financial penalties on licensees for breach of licence conditions. The maximum penalty is set by reference to the licensee's turnover
- Licence revocation: In serious cases, UREGNI can revoke a licence. This is the most severe sanction and would prevent the business from continuing the licensed activity
- Consumer redress: UREGNI can require licensees to provide redress to consumers affected by licence breaches
What happens next
Once you hold a licence, you should familiarise yourself with the relevant market codes and industry arrangements. For electricity, this includes the SEM Trading and Settlement Code and the Grid Code. For gas, this includes the relevant network codes for the gas transmission and distribution systems.
UREGNI regularly consults on changes to licence conditions, market rules, and regulatory policy. As a licensee, you will be expected to engage with these consultations. UREGNI also conducts periodic price control reviews for network companies, which set the allowed revenue and investment programme for each control period.
If your plans change after receiving a licence — for example, if you wish to expand into a different activity or transfer the licence to another entity — you must notify UREGNI and may need to apply for a licence modification or a new licence.