| Guvnor

What this means for your business

19 obligations

18 penalties

12 can imprison

4 guides

Enforced by: Ofgem, NSTA, The Crown Estate, Crown Estate Scotland
Applies to: United Kingdom
On this page: 19 compliance obligations, 4 practical guides

Read full text on legislation.gov.uk

What you must do

19 compliance obligations under this legislation — 12 can result in imprisonment.

Notifications 1

You must give the Minister the name and address of a person who will receive all licence notices, directions and other documents. If that contact changes you must tell the Minister as soon as reasonably practicable, and you must do so within one month if the Minister issues a reminder.

Employer Schedule 3 The Crown Estate

Other requirements 3

If you want a smart‑meter communication licence, you must not have any financial or other interest that could influence how you run the licence. The Authority will refuse to grant the licence unless it is satisfied you have no such conflict.

Any Person s.91B The Crown Estate Applying for a smart‑meter communication licence

If your business plans to store, convert, explore for, or install equipment for carbon dioxide storage in offshore waters, the territorial sea or other designated UK waters, you must first obtain a licence. Carrying out any of these activities without a licence is a criminal offence.

Any Person s.17 The Crown Estate When you intend to carry out storage, conversion, exploration or installation activities …

If your energy activity could block or endanger navigation, you must apply to the Secretary of State for consent under s 82A. He can refuse or grant consent with conditions – you can’t start the work without the appropriate consent and must follow any conditions imposed. If consent is refused, you must stop or change the operation.

Any Person s.82C The Crown Estate Operation is likely to obstruct or endanger navigation

Payments and fees 1

If you submit a proposal for a funded decommissioning programme to the Secretary of State, you must pay a fee that covers the cost of the government’s review of your proposal. The amount and payment date are set by regulations, so you’ll need to follow the rules that apply at the time you make the submission.

Any Person s.45A The Crown Estate When you inform the Secretary of State of a proposal to submit …

Offences and prohibitions 14

If your business holds an energy licence and carries out any activity that the licence says needs prior consent without getting that consent, or ignores conditions attached to consent, fails to keep required records or breaches any other licence requirement, you commit an offence. The same applies if you knowingly give false information or withhold relevant facts when applying for a licence or consent. Conviction can lead to an unlimited fine.

Any Person s.9 NSTA

If you hold a licence and you do something that requires prior consent without getting that consent, ignore conditions attached to consent, fail to keep required records, give notices or returns, or breach any other licence provision, you commit a criminal offence. On conviction you can face up to an unlimited fine and up to two years’ imprisonment, and the offence can be tried either in the Magistrates’ Court or the Crown Court.

Any Person s.23 NSTA

If your company drills a well under a petroleum licence or a gas‑storage licence, the Secretary of State can issue a notice requiring you to supply information or to take specific actions such as plugging and abandoning the well. Failing to comply with that notice – unless you can prove you exercised due diligence – is a criminal offence. On conviction you face an unlimited fine and/or up to two years’ imprisonment.

Any Person s.75 NSTA

If a licensing authority gives you a direction under section 24 of the Energy Act 2008 and you do not comply – unless you can prove you took all reasonable steps to avoid the breach – you commit a criminal offence. On summary conviction you can be fined up to £50,000. On indictment you face up to two years’ imprisonment, an unlimited fine, or both.

Any Person s.25 NSTA

If you own an upstream petroleum pipeline and you do not follow a modification notice issued by the Secretary of State – for example by refusing to make the required changes or by not paying the agreed sums – you commit a criminal offence. On conviction you face an unlimited fine, either after a summary hearing in the Magistrates' Court or after a Crown Court trial. There is no custodial sentence for this breach.

Any Person s.79 NSTA

If you run a site and an approved funded de‑commissioning programme places obligations on you, failing to carry out those obligations is a criminal offence. You can defend yourself by proving you exercised due diligence, but if convicted you face an unlimited fine and up to two years’ imprisonment.

Any Person s.57 NSTA

If you receive a formal notice requiring you to supply information or documents to the Secretary of State under the Energy Act 2008 and you do not provide it (without a reasonable excuse), you commit a criminal offence. The same applies if you disclose that information in breach of the notice, unless an exception applies. Conviction can lead to fines and/or imprisonment, but the exact penalties are set elsewhere in the legislation.

Any Person s.71 NSTA

If the Office of Gas and Electricity Markets (or a similar authority) gives you a formal direction under section 10 of the Energy Act and you do not follow it, you commit a criminal offence unless you can prove you took all reasonable steps (due diligence) to avoid the failure. On conviction you face a fine – the maximum possible is unlimited – and the case can be tried either in a magistrates' court or in the Crown Court.

Any Person s.11 NSTA

If you knowingly or recklessly give a false statement, or fail to reveal information you know (or ought to know) is relevant, when applying to the Secretary of State for a consent under the Energy Act, you commit an offence. This applies to any person or business submitting a consent application. If convicted you will be fined – the fine can be unlimited, whether dealt with in summary or on indictment.

Any Person s.82J NSTA

If you carry out a regulated activity at a controlled location without holding the appropriate licence – or do it on behalf of someone who doesn’t have a licence – you commit a criminal offence. You are also liable if you cause or allow another person to do the same. Conviction can lead to up to two years’ imprisonment, an unlimited fine (or up‑to‑£50,000 if tried summarily), or both.

Any Person s.22 NSTA

If you knowingly or recklessly give the Secretary of State false or misleading information in response to a request under the Energy Act, you commit a criminal offence. On summary conviction you can be fined up to the statutory maximum, and on indictment you face up to two years’ imprisonment, an unlimited fine, or both.

Any Person s.60 NSTA

If you (or anyone working for you) share confidential information about a petroleum licence transfer that you obtained from HMRC without the required permission, you commit a criminal offence. On conviction you could be fined an unlimited amount and face up to 12 months' imprisonment in the Magistrates' Court, or up to 2 years' imprisonment in the Crown Court. A defence is available if you reasonably believed the disclosure was lawful or the information was already public.

Any Person s.76 NSTA

If your business shares information that you received because of a notice under the Energy Act (for example, nuclear or radioactive material data) without the required permission, you commit a criminal offence. The disclosure is only allowed if you have the provider’s consent, it is required by law, or it falls within one of the specific exemptions listed in the section. Conviction can result in up to two years’ imprisonment, an unlimited fine, or both.

Any Person s.59 NSTA

If you hold a nuclear site licence and you start using the site (or let someone else use it) before you have submitted a required programme and had that programme approved, you are committing a criminal offence. The offence can be tried either in the magistrates' court or the Crown Court. On conviction you face an unlimited fine and, on indictment, up to two years’ imprisonment (or both).

Any Person s.47 NSTA