UK Act of Parliament 1989 United Kingdom

Electricity Act 1989

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At a glance

What's here

66 compliance obligations, 13 practical guides · 2 journeys · 26 statutory instruments

Penalty landscape

8 of 66 obligations carry an unlimited fine. 3 carry different penalties and 55 have no criminal penalty — flagged in the list below.

Who this Act binds

Business-side actors with duties under this Act, ranked by how often they appear.

  • Any Person 21
  • Distributor 9
  • Licence Holder 3
  • Trader 2
  • Applicant 1

Plus 30 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.

Step-by-step journeys using this legislation

Walkthroughs that take you from a real business situation to compliance.

Relevant guidance

Practical guides for businesses affected by this Act, ordered by how closely they engage with it.

Direct — cites this Act

3 guides

Supporting — topic alignment

9 guides

Mentioned in related content

1 guides
View all 13 guides →

Other Acts binding the same actors

For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.

Any Person also bound by 749 other Acts (top 5 shown)
Distributors also bound by 33 other Acts (top 5 shown)
Licence Holders also bound by 50 other Acts (top 5 shown)
Traders also bound by 219 other Acts (top 5 shown)
Applicants also bound by 146 other Acts (top 5 shown)

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

Part I — ELECTRICITY SUPPLY

s.003

Guidance on social and environmental matters.

Other duties (1) — Crown / regulator
  • Secretary of State must issue guidance on social and environmental matters Crown / Minister / Government department
s.003

Binding decisions of the Agency for the Cooperation of Energy Regulators and of the European Commission

Other duties (1) — Crown / regulator
  • Ofgem must comply with binding EU energy decisions Statutory regulator
s.003

Authority to consult and cooperate with other authorities

Other duties (1) — Crown / regulator
  • Ofgem must coordinate with other authorities on electricity market regulation Statutory regulator
s.005

Duties of distribution exemption holders

  • Comply with duties for distribution exemption holders Any Person
s.005

Duties of supply exemption holders

  • Comply with duties for exempt electricity suppliers Any Person
s.006

Applications for transmission licences.

  • Notify existing licence holders of your transmission licence application Applicant
s.006

Recovery of tender costs

  • Pay required tender costs and provide security or deposits Any Person
s.007

Transfer of licences.

  • Obtain Ofgem consent before transferring an electricity licence Licence Holder
s.010

Electricity transmission and the operation of electricity interconnectors: requirement for certain participants to be certified as independent

  • Obtain independence certification for electricity transmission or interconnection Any Person
s.010

Report where applicant connected with a country outside the United Kingdom

Other duties (1) — Crown / regulator
  • Secretary of State must report on energy security for foreign applicants Crown / Minister / Government department
s.010

Certification

Other duties (1) — Crown / regulator
  • Ofgem must decide on certification applications within statutory deadlines Statutory regulator
s.010

Designation for the purposes of the Electricity Regulation

Other duties (1) — Crown / regulator
  • Ofgem must notify you of your designation as a system operator Statutory regulator
s.010

Report as to any connection of certified person with a country outside the United Kingdom

Other duties (1) — Crown / regulator
  • Secretary of State must report on security risks of foreign connections Crown / Minister / Government department
s.010

Prohibition on the exercise of certain shareholder rights and rights of appointment

  • Do not exercise restricted shareholder or appointment rights Any Person
s.011

Determination by CMA of appeal

Other duties (1) — Crown / regulator
  • CMA must determine electricity licence modification appeals Tribunal / Court
s.011

CMA's powers on allowing appeal

Unlimited fine
Other duties (1) — Crown / regulator
  • CMA must issue specific orders when allowing an electricity license appeal Tribunal / Court
s.011

Determination of appeal by CMA : supplementary

Other duties (1) — Crown / regulator
  • CMA must issue, explain, and publish appeal decisions Statutory regulator
s.026

Procedural requirements.

Other duties (1) — Crown / regulator
  • Ofgem must follow specific procedures before issuing enforcement orders Statutory regulator
s.027

Consumer redress orders

Other duties (1) — Crown / regulator
  • Ofgem may issue consumer redress orders for rule breaches Statutory regulator
s.027

Remedial action under a consumer redress order

  • Comply with consumer redress orders and remedial actions Any Person
s.027

Other procedural requirements in relation to consumer redress orders

Other duties (1) — Crown / regulator
  • Ofgem must follow specific procedures before issuing a redress order Statutory regulator
s.032

Renewables obligation orders: procedure

Other duties (1) — Crown / regulator
  • Ministers must consult industry before making Renewables Obligation orders Crown / Minister / Government department
s.032

Renewables obligation closure orders: procedure

Other duties (1) — Crown / regulator
  • Secretary of State must consult and gain Parliament approval for closure orders Crown / Minister / Government department
s.032

Use of levy payments

Other duties (1) — Crown / regulator
  • Secretary of State may direct levy funds to be paid into the Consolidated Fund Crown / Minister / Government department
s.032

Certificate purchase orders: corresponding provision

Other duties (1) — Crown / regulator
  • Secretary of State must align certificate purchase orders across regions Crown / Minister / Government department
s.036

Duties in relation to navigation

Unlimited fine
Other duties (1) — Crown / regulator
  • Authorities must assess impact on sea lanes before approving offshore energy Statutory regulator
s.039

Standards of performance in individual cases: electricity distributors.

  • Pay compensation for failing to meet electricity service standards Distributor
s.040

Overall standards of performance: electricity distributors.

  • Achieve overall standards of performance for electricity distribution Distributor
s.040

Procedures for prescribing or determining standards of performance.

Other duties (1) — Crown / regulator
  • Ofgem must consult and notify before setting service standards Statutory regulator
s.042

Publication of statistical information about standards of performance.

Other duties (1) — Crown / regulator
  • Citizens Advice must publish performance and complaint stats for energy firms Statutory regulator
s.042

Remuneration and service standards.

  • Disclose director pay linked to service standards Trader
s.047

General functions.

Other duties (1) — Crown / regulator
  • Ofgem must monitor and collect data on electricity market activities Statutory regulator
s.047

Power to require information etc for the purpose of monitoring

Unlimited fine
  • Tamper with or destroy documents required for regulatory monitoring Any Person
s.056

Reports on references.

Other duties (1) — Crown / regulator
  • CMA must report on whether specific activities should be licensed Statutory regulator
s.056

Application by Authority for order excluding activities.

Other duties (1) — Crown / regulator
  • Ofgem must consult before removing an activity from licensing requirements Statutory regulator
s.056

Consultation by Secretary of State about order excluding activities.

Other duties (1) — Crown / regulator
  • Secretary of State must consult before removing licensable activities Crown / Minister / Government department
s.056

Service by Authority of certain notices on Citizens Advice and Consumer Scotland.

Other duties (1) — Crown / regulator
  • Ofgem must provide copies of notices to consumer advocacy bodies Statutory regulator
Browse 161 other sections in this Part — procedural / definitional / commencement
s.003

The principal objective and general duties of the Secretary of State and the Authority.

s.003

Health and safety.

s.003

Exceptions from sections 3A to 3C.

s.006

Procedure for licence applications.

s.006

Meaning of “relevant electricity project”, “relevant licence” and “relevant contract”

s.006

Designation of a delivery body

s.006

Competitive tenders

s.006

Power to require information

s.006

Competitive tenders: supplementary

s.006

Sections 6C to 6CC: further definitions

s.006

Section 6C: supplemental provision

s.006

Property schemes in respect of relevant licences and contracts

s.006

... Transmission during commissioning period

s.006

Section 6F: meaning of “commissioning period”

s.006

Sections 6C, 6F and 6G: modification of codes or agreements

s.007

Uniform prices etc. in certain areas of Scotland.

s.008

Standard conditions of licences.

s.010

Application for certification

s.010

Grounds for certification

s.010

The ownership unbundling requirement

s.010

The ownership unbundling requirement: supplementary

s.010

Monitoring and review of certification

s.010

Review of certification: requirement to provide information etc

s.010

Continuation or withdrawal of certification

s.010

Validity of acts infringing section 10M

s.010

Interpretation

s.011

Modification of conditions of licences

s.011

Modification of conditions under section 11A: early effective date

s.011

Modification of conditions under section 11A: supplementary

s.011

Appeal to the CMA

s.011

Procedure on appeal to CMA

s.011

Time limits for CMA to determine an appeal

s.012

References under section 12: time limits

s.012

References under section 12: powers of investigation

s.014

Competition Commission’s power to veto modifications following report.

s.015

Licence modifications relating to new electricity trading arrangements.

s.016

Procedure for requiring a connection.

s.027

Penalties.

s.027

Statement of policy with respect to penalties.

s.027

Time limits on the imposition of financial penalties.

s.027

Interest and payment of instalments.

s.027

Appeals against penalties.

s.027

Recovery of penalties.

s.027

Statement of policy with respect to consumer redress orders

s.027

Time limits for making consumer redress orders

s.027

Enforcement of consumer redress orders

s.027

Appeals against consumer redress orders

s.027

Consumer redress orders: miscellaneous

s.027

Maximum amount of penalty or compensation

s.032

Further provision about the renewables obligation

s.032

Renewables obligation certificates

s.032

Section 32B: supplemental provision

s.032

Amounts of electricity specified in certificates

s.032

Section 32D: transitional provision and savings

s.032

Use of renewables obligation certificates issued in Northern Ireland

s.032

Payment as alternative to complying with renewables obligation order

s.032

Allocation of amounts to electricity suppliers

s.032

Costs of the Authority and the Northern Ireland authority

s.032

Information

s.032

Renewables obligation order: general provision

s.032

Renewables obligation closure order

s.032

Onshore wind generating stations: closure of renewables obligation

s.032

Onshore wind generating stations accredited, or additional capacity added, on or before the onshore wind closure date

s.032

Onshore wind generating stations accredited, or additional capacity added, in the year after the onshore wind closure date: grid or radar delay condition met

s.032

Onshore wind generating stations accredited, or additional capacity added, on or before 31 March 2017: approved development condition met

s.032

Onshore wind generating stations accredited, or additional capacity added, between 1 April 2017 and 31 March 2018: grid or radar delay condition met

s.032

Onshore wind generating stations accredited, or additional capacity added, between 1 April 2017 and 31 January 2018: investment freezing condition met

s.032

Onshore wind generating stations accredited, or additional capacity added, between 1 February 2018 and 31 January 2019: grid or radar delay condition met

s.032

The approved development condition

s.032

The investment freezing condition

s.032

The grid or radar delay condition

s.032

Use of Northern Ireland certificates: onshore wind power

s.032

Interpretation of sections 32 to 32M

s.032

The certificate purchase obligation

s.032

Further provision about the certificate purchase obligation

s.032

Certificate purchase levy

s.032

Designation of a CFD counterparty as purchasing body or administrator

s.032

GB certificates

s.032

NI certificates

s.032

Sections 32S and 32T: supplemental provision

s.032

Certificate purchase orders: amounts of electricity stated in certificates

s.032

Section 32V: transitional provision and savings

s.032

Certificate purchase orders: information

s.032

Certificate purchase orders: general provision

s.036

Declarations extinguishing etc. public rights of navigation

s.036

Variation of consents under section 36

s.036

Proceedings for questioning certain decisions under section 36

s.036

Applications under section 36D: requirement for permission

s.039

Standards of performance in individual cases: disputes.

s.041

Promotion of reductions in carbon emissions: ... electricity distributors and electricity suppliers

s.041

Scottish Ministers' promotion of reductions in carbon emissions: electricity suppliers

s.041

Promotion of reductions in home-heating costs: electricity distributors and electricity suppliers

s.041

Scottish Ministers' promotion of reductions in home-heating costs: electricity suppliers

s.042

Information to be given to customers about overall performance.

s.042

Information relating to complaints handling standards

s.042

Procedures for dealing with complaints.

s.043

Adjustment of charges to help disadvantaged groups of customers.

s.043

Orders: supplementary.

s.044

Meaning of “ section 44B dispute”

s.044

Determination of disputes

s.044

Time limit for determinations

s.046

Power of Council to investigate other matters.

s.047

Annual report by Authority on security of electricity supply

s.049

Reasons for decisions.

s.056

Power to alter activities requiring licence.

s.056

Application by Authority for order including new activities.

s.056

References to CMA.

s.056

References under section 56C: time limits

s.056

References under section 56C: application of Enterprise Act 2002

s.056

New licensable activities: smart meters

s.056

Section 56FA: supplemental

s.056

New licensable activities: load control of energy smart appliances

s.056

Regulations under section 56FBA

s.056

Competitive tenders for licences for new licensable activities

Part II — REORGANISATION OF THE INDUSTRY

s.078

Government lending to the companies.

Other duties (1) — Crown / regulator
  • Secretary of State must manage and report on loans to Crown-owned companies Crown / Minister / Government department
Browse 28 other sections in this Part — procedural / definitional / commencement

Part III — MISCELLANEOUS AND SUPPLEMENTAL

s.107

Directions.

  • Comply with formal directions given under the Electricity Act Any Person
Browse 10 other sections in this Part — procedural / definitional / commencement
s.108

Extraterritorial operation of Act

Schedules

s.012

Nuclear Liabilities: Financial Assistance

Other duties (1) — Crown / regulator
  • Secretary of State may provide financial assistance for nuclear liabilities Crown / Minister / Government department
s.sch002za

Duties of distribution exemption holders

  • Manage third-party electricity supplier access requests Any Person
s.sch002zb

Duties of supply exemption holders

  • Switch electricity customers and provide written contracts Any Person
Browse 16 other Schedules — structural / supplementary
s.sch002a

Property Schemes

s.sch005a

Procedure for appeals under section 11C

s.sch005b

Reimbursement of persons who have met expenses

s.sch006a

Provisions imposing obligations enforceable as relevant requirements

Read the full Act on legislation.gov.uk (opens in a new tab)

Official guidance

Authoritative sources published by regulators or government explaining this legislation.

Enforcement and responsible bodies

The regulators that administer or enforce this legislation.

CMA

Primary

Competition and Markets Authority

Promotes competitive markets and tackles unfair behaviour. Investigates mergers, enforces competition law, and has specific digital markets powers. Digital Markets Unit (DMU) …

Ofgem

Office of Gas and Electricity Markets

Regulates gas and electricity markets in Great Britain. Issues licences for generation, transmission, distribution, and supply. Protects consumers and promotes competition. Also …

NSTA

North Sea Transition Authority

Licenses and regulates the UK oil and gas, offshore hydrogen, and carbon storage industries. Issues petroleum production licences and CO2 storage licences. …

Crown Estate Scotland

Manages Crown land and seabed in Scottish waters. Grants leases for offshore wind farms under ScotWind and INTOG leasing rounds. Separate from …

Connected legislation

26 statutory instruments

These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.

Secondary legislation (26)

+ 11 more statutory instruments

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Browse legislation

Find other UK business legislation with related guidance.

Regulators

Learn more about the bodies that enforce this legislation.