Energy & Utilities

Which energy rules apply to your business

Energy businesses — electricity generators, network operators, gas transporters and manufacturers, energy suppliers and heat network operators — share one defining feature: most activities need an Ofgem licence or authorisation before you can operate, and operating without one can be a criminal offence. Beyond licensing, what you must do depends on what you operate. Work out which you are and follow the right guide — and if you operate in Northern Ireland, the Utility Regulator (UREGNI) licenses you separately.

UK-wide
On this page
UK-wide

Related guides in General Compliance

Energy compliance checklist

A confirmation checklist for energy businesses. Work through the cross-cutting duties every energy business shares, then the section …

Grid Connection Agreement

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

Energy supply covers very different operations — generating electricity, running the wires and pipes, making gas, selling energy to customers, and supplying heat, steam or cooling. In Great Britain the defining regulator is Ofgem: generation, transmission, distribution and supply of electricity, and the transport, shipping and supply of gas, are licensable activities under the Electricity Act 1989 and the Gas Act 1986, and operating without a required licence is a criminal offence. The HSE regulates the major-hazard safety side — safety cases, pipelines and pressure systems. In Northern Ireland the Gas Act 1986 does not apply and electricity licensing is separate: the Utility Regulator (UREGNI) licenses both. Work out what you operate, then follow the right guides — if you do more than one, follow each.

  1. 1

    Put the shared duties in place

    Whatever you operate, start with the universal spine. Follow "Run a compliant energy business" for workplace health and safety, employers' liability insurance, environmental permitting, the UK Emissions Trading Scheme and COMAH major-accident duties.

  2. 2

    If you generate electricity

    Check whether you need an Ofgem generation licence or qualify for a class exemption (most generators under 50 MW are exempt), secure a grid connection agreement, and check the planning route for larger stations. Follow "Get an electricity generation licence" — and "Get paid for renewable electricity you generate" for small-scale renewables, "Working in the civil nuclear industry" for nuclear, or "Develop offshore wind projects and secure seabed leases" for offshore wind.

  3. 3

    If you run an electricity network

    Transmission and distribution are licensed monopoly activities under RIIO price controls, with industry-code compliance and guaranteed standards of performance. Independent connection providers and IDNOs have their own registration routes. Follow "Run an electricity network business".

  4. 4

    If you run a gas network or manufacture gas

    Gas transporters need an Ofgem licence and an HSE-accepted safety case before conveying gas; gas manufacturing processes connected to a network need their own safety case, and high-pressure pipelines carry major-accident duties. Follow "Gas network and gas safety rules" — and "Gas supply and shipper licensing" for the licence application itself.

  5. 5

    If you supply or trade energy

    Electricity and gas suppliers need Ofgem supply licences, must join the industry codes, and carry ongoing consumer-protection duties including the domestic price cap and renewable-scheme obligations. Follow "Comply as an energy supplier" — and "Electricity Supply Licence" or "Gas supply and shipper licensing" for the application process.

  6. 6

    If you run a heat network, or supply steam or air conditioning

    Heat networks are moving into Ofgem regulation under the Energy Act 2023, and steam and cooling plant carry pressure-system, F-gas and building-regulation duties. Follow "Run a heat network or steam supply business".

  7. 7

    If you operate in Northern Ireland

    Electricity and gas licensing in Northern Ireland sits with the Utility Regulator (UREGNI), not Ofgem, and the electricity market is the all-island Single Electricity Market. Follow "Understanding UREGNI: utility regulation in Northern Ireland" and "Apply for an electricity or gas licence in Northern Ireland".

  8. 8

    Confirm you have covered everything

    Finish with the energy compliance checklist to confirm every obligation that applies to you is in place.

Official sources

Authoritative starting points for energy businesses.