Energy & Utilities

Run a compliant energy business

Whatever energy business you run — generation, networks, gas, supply or heat — the same core duties apply. Health and safety carries unusual weight in this sector because of major-hazard risk, you must insure your employees, activities with emissions need an environmental permit from the right national regulator, large combustion installations are in the UK Emissions Trading Scheme, and sites holding dangerous substances above threshold quantities have COMAH major-accident duties.

UK-wide
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UK-wide

Related guides in Health & Safety

Every energy business — a generator, a network operator, a gas manufacturer, a supplier or a heat network — shares a set of duties that do not depend on what it operates. In this sector they carry unusual weight: the substances and plant involved make health and safety a major-hazard discipline, and the emissions involved put many sites inside the environmental permitting and emissions trading regimes. Put these duties in place first, then add the rules for what you operate.

Keep your workplace safe

You owe a general duty to protect employees and anyone else affected by the business. In the energy sector this is particularly significant given major-hazard risks — gas, high-voltage plant, pressure systems and hazardous substances. The Health and Safety at Work etc. Act 1974 applies in Great Britain; the Health and Safety Executive for Northern Ireland (HSENI) enforces the corresponding rules in Northern Ireland.

Insure your employees

If you employ anyone you must hold employers' liability insurance of at least £5 million from an authorised insurer — and energy-sector insurers typically require £10 million or more in practice. This is a duty in Great Britain; equivalent rules apply in Northern Ireland.

Get the right environmental permit

Activities with emissions to air, water or land need an environmental permit. In England that is the Environment Agency under the Environmental Permitting (England and Wales) Regulations 2016; Natural Resources Wales covers Wales, SEPA covers Scotland under the Pollution Prevention and Control (Scotland) Regulations 2012, and the NIEA covers Northern Ireland. Large combustion plant operators need specific permits implementing the Industrial Emissions Directive.

For the permit type that fits your plant, see medium combustion plant permits, Part A(1) installation permits and controlling and monitoring air emissions.

Comply with the UK Emissions Trading Scheme

Installations above the UK ETS threshold — generally more than 20 MW thermal input — must hold a greenhouse gas emissions permit, monitor emissions, submit a verified annual report by 31 March and surrender allowances by 30 April each year. The Environment Agency regulates in England, SEPA in Scotland, NRW in Wales and the NIEA in Northern Ireland. One exception: electricity generators in Northern Ireland remain in the EU Emissions Trading System, not the UK ETS, because of the all-island Single Electricity Market.

Follow UK Emissions Trading Scheme compliance for the full annual cycle.

Check your COMAH position

Energy sites holding dangerous substances — liquefied natural gas, hydrogen, flammable gases — at or above threshold quantities are COMAH establishments. Lower-tier sites must notify the competent authority and maintain a major accident prevention policy; upper-tier sites also need a safety report and emergency plan. COMAH applies in Great Britain, enforced by HSE with the environmental regulator as joint competent authority; Northern Ireland has parallel COMAH regulations.

For the full establishment duties, see COMAH compliance.

Next steps

With the shared duties in place, follow the rules for what you operate:

Then confirm everything with the energy compliance checklist.