Utilities Act 2000
What this means for your business
- Applies to
- United Kingdom
- On this page
- 13 compliance obligations, 2 practical guides
What you must do
13 compliance obligations under this legislation.
Management duties 7
Ensure gas quality standards compliance
If you transport gas you must run your business so that the gas you deliver meets the pressure, purity and composition standards set by the regulator. This includes arranging regular testing, providing samples and test results, paying the regulator’s share of testing costs and supplying any information the regulator requests.
Maintain an efficient, coordinated and economical electricity distribution system
If you run an electricity distribution network, you must continuously develop and keep a system that delivers power efficiently, works well with other networks and is cost‑effective. You also need to act in ways that encourage competition among electricity suppliers and generators.
Meet regulator‑set performance standards for gas transport
If you operate a gas transmission business you must run it so that you can achieve the overall performance standards the regulator publishes for you. In practice this means monitoring your performance, putting improvement plans in place and ensuring your operations meet the required targets.
Obtain regulator consent before transferring an electricity licence
If your business holds an electricity licence and you want to sell or assign it (in whole or in part), you must first get consent from the regulator. You also have to publish a notice of the proposed transfer, allow at least two months for objections, and comply with any conditions the regulator attaches. Without following these steps the transfer will be void.
Provide free meter changes for disabled customers and enforce payment with notice
If a disabled person needs their electricity meter moved or replaced with a specially adapted one, you must do it at no charge. If a customer has not paid their electricity bill within 28 days of a written demand, you may install a pre‑payment meter or disconnect the supply, but only after giving at least 7 working days’ notice and not while any amount is genuinely disputed.
Run your electricity distribution business to meet regulator‑set performance standards
If you operate an electricity distribution company, you must manage your business so that you can reasonably be expected to meet the overall performance standards that the regulator publishes. This means planning, monitoring and improving your services to achieve those standards and not falling below them.
Separate your electricity supply and distribution licences
If your business holds an electricity supply licence that also includes distribution, you must split those activities into separate licences. You need to nominate an associate (or two) to take over the part you are not keeping, draw up a transfer scheme that divides all property, rights and liabilities, and get the scheme approved by the Secretary of State before the deadline they set.
Notifications 2
Give a 28‑day objection to licence condition changes
If you hold a utilities licence, the regulator will publish a notice if it intends to change the licence rules. You need to read that notice and, if you disagree, send a written objection within 28 days. If you do not object, the new conditions will apply and you must comply with them.
Obtain regulator consent before transferring a gas licence
If you want to sell or assign your gas licence – either the whole licence or just part of the authorised activities – you must get the regulator’s consent first. You also have to give the Health and Safety Executive and the Secretary of State at least 28 days’ notice, publish a notice of the proposed transfer for a minimum of two months and comply with any conditions the regulator attaches. Without meeting these steps the transfer will be void.
Payments and fees 1
Meet electricity performance standards and pay compensation if you fall short
If you operate as an electricity distributor you must follow the performance standards set by the regulator. When you do not meet a prescribed standard you must pay compensation to any affected customers (or potential customers) as defined by the regulations, and you may need to inform them of their rights.
Reporting and filing 3
Provide information to the Secretary of State or Scottish Ministers on request
If you are a gas transporter, gas supplier, electricity distributor, electricity supplier, the regulator (the Authority) or any body acting as Administrator for a carbon‑emissions or home‑heating cost order, you may be served with a statutory notice requiring you to give specified information about emissions‑reduction or heating‑cost‑reduction measures. You must supply the information in the form and within the timescales set out in the notice.
Provide requested information to the Authority about your renewables supply
If the Secretary of State or the Authority issues an order relating to the electricity renewables obligation, you must give them the data and evidence they ask for. This usually covers how much electricity you supplied, what renewable sources it came from, and any other information laid out in the order. It’s a standard reporting task that applies to every electricity supplier.
Submit certified accounts and audit reports to Ministers and lay them before parliament
If you run a utility authority, you must send a copy of your certified accounts and audit report to the Comptroller and Auditor General by 15 January of the following financial year, and to the appropriate Ministers or the Northern Ireland Department for the Economy by 31 January. Those Ministers then need to present that information to the Scottish Parliament, Welsh Assembly or Northern Ireland Assembly. This keeps the legislature fully informed each year.
Practical guidance
Our guides explain how to comply with the requirements above.
Electricity Supply Licence
Businesses supplying electricity to consumers in Great Britain require a Supply Licence from Ofgem.
Gas supply and shipper licensing
How to obtain a gas supply, shipper, transporter, or interconnector licence from Ofgem. Covers licence types, exemptions, application process, fees, …
Sections and provisions
126 classified provisions from this legislation.
Duties 18
- s.3A Exercise of designated regulatory functions etc The Authority
- s.4 Forward work programmes. year
- Schedule 4 Schedule to be substituted for Schedule 6 to the 1989 Act the supplier
- s.5XA Laying of accounts before Scottish Parliament , Senedd Cymru or the Northern Ireland Assembly
- s.20 Provision of information to consumers. Council
- s.35 Modification of standard conditions of licences. standard conditions
- s.41 Transfer of electricity licences. term as
- s.50 General duties of electricity distributors.
- s.54 Standards of performance in individual cases. failure
- s.55 Overall standards of performance. electricity distributor
- s.56 Standards of performance: procedures.
- s.63 Orders under section 32: supplementary. person
- s.85 Transfer of gas licences. the Authority
- s.91 Overall standards of performance. gas transporter
- s.92 Standards of performance: procedures.
- s.101 Standards of gas quality. gas transporter
- s.103B Power of Secretary of State and the Scottish Ministers to require information: carbon emissions reduction targets and home-heating cost reduction targets person
- Schedule 7 Transitional provisions and savings supplier
Powers 24
- s.3 Transfer to Authority ... of functions, property etc.
- s.5 Annual and other reports of Authority.
- s.8 Payments by licence holders relating to new arrangements.
- s.15 Health and safety in relation to electricity.
- s.21 Power to publish advice and information about consumer matters.
- s.29 Exemptions from electricity licensing.
- s.43 Altering activities requiring electricity licence.
- s.58 Information to be given to customers.
- s.62 Obligation in connection with electricity from renewable sources.
- s.67 Supplementary.
- s.70 Energy efficiency requirements for electricity distributors and suppliers.
- s.72 Uniform prices etc. in certain areas of Scotland.
- s.86 Exemptions from gas licensing.
- s.88 Altering activities requiring gas licence.
- s.90 Standards of performance in individual cases.
- s.94 Information to be given to customers.
- s.99 Energy efficiency requirements for gas transporters and suppliers.
- s.100 Exercise of powers to make regulations.
- s.103A Overall home-heating cost reduction targets
- s.103 Overall carbon emissions reduction targets.
- ... and 4 more powers
Definitions 9
- s.1 Gas and Electricity Markets Authority.
- s.9 Objectives and duties under 1986 Act. exemption licence
- s.10 Guidance on social and environmental matters in relation to gas.
- s.11 Health and safety in relation to gas.
- s.13 Objectives and duties under 1989 Act. exemption licence
- s.14 Guidance on social and environmental matters in relation to electricity.
- s.30 Licences authorising supply etc. of electricity. electricity distributor electricity supplier prescribed
- s.49 Special agreements with respect to connection.
- s.106 Interpretation. Authority Citizens Advice Citizens Advice Scotland
Exemptions 11
- s.4A Information in relation to strategy and policy statement
- s.5A Duty of Authority to carry out impact assessment
- s.12 Exceptions from the general duties under 1986 Act.
- s.16 Exceptions from the general duties under 1989 Act.
- s.39 Competition Commission’s power to veto modifications.
- s.42 Reasons for decisions under 1989 Act.
- s.44 Duty to connect on request.
- s.75 Exceptions from section 5 of 1986 Act.
- s.83 Modification following Competition Commission report.
- s.87 Reasons for decisions under 1986 Act.
- Schedule 8 Repeals