Energy & Utilities UK-wide

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.

Guide summary

Find out what energy activity your business does. You must get an Ofgem licence or exemption before you start generating, transporting, or supplying electricity or gas. Operating without a licence can be a criminal offence. Follow the guide for your business type and check with the Utility Regulator if you are in Northern Ireland.

  • Identify your energy business type
  • Check if you need an Ofgem licence or qualify for an exemption
  • Apply for a generation licence if over 50MW capacity
  • Get an HSE-accepted safety case for gas networks
  • Follow the guide for your sector (generation, network, supply, heat)
  • Use UREGNI instead of Ofgem if you are in Northern Ireland
  • Put shared duties in place: health, safety, environment, COMAH
  • Complete the energy compliance checklist at the end
On this page

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Energy compliance checklist

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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.