SIC 35.13 50 enterprises in the UK
Distribution of electricity
What this covers (3 activity descriptions)
- Electricity distribution operations by lines
- Electricity distribution system operation (carrying electricity to end users)
- Repair and maintenance of electricity meters
What you must comply with
Unique to distribution of electricity
Ofgem electricity distribution licence
Required for operators of electricity distribution networks (medium- and low-voltage networks delivering electricity to end users). The six main Distribution Network Operators (DNOs) hold Ofgem distribution licences and operate as regulated monopolies under RIIO price controls. Independent Distribution Network Operators (IDNOs) and Independent Connection Providers (ICPs) may also hold distribution licences for adoption of privately-built networks. Northern Ireland: NIE Networks regulated by UREGNI.
Independent Connection Provider (ICP) or IDNO registration
Businesses that design, install, and adopt electrical connection assets (new housing estates, commercial sites) may register as ICPs (to build to DNO standards) or IDNOs (to adopt and own adopted networks). IDNO registration requires an Ofgem distribution licence. ICP accreditation is through industry schemes (NERS — National Electricity Registration Scheme). This is distinct from the main DNO licensed territory.
RIIO-ED price control compliance
Distribution network operators are subject to the RIIO-ED price control (current: RIIO-ED2, 2023–2028). DNOs must submit annual regulatory accounts and performance data to Ofgem. Incentive rewards or penalties apply based on performance against output targets.
Electricity distribution quality of service standards (Ofgem guaranteed standards)
DNOs must meet guaranteed standards of performance (GSoP) and overall standards of performance, including automatic compensation payments to customers for supply interruptions exceeding specified durations. Annual reporting to Ofgem on interruption statistics (CML — Customer Minutes Lost, CI — Customer Interruptions).
Applies to all electric power generation, transmission and distribution
Health and Safety at Work etc. Act 1974
General duties to employees and others. Particularly significant in the energy sector given major hazard risks. HSENI enforces in Northern Ireland.
Employers' Liability Insurance
Required for all employers. Sole traders with no employees exempt.
Environmental Permitting (England and Wales) Regulations 2016
Required for activities with emissions to air, water, or land. Equivalent regime in Scotland (SEPA under Pollution Prevention and Control (Scotland) Regulations 2012), Wales (NRW), and Northern Ireland (NIEA). Large combustion plant operators require specific IED permits.
Control of Major Accident Hazards (COMAH) Regulations 2015
Applies to energy sites holding dangerous substances (liquefied natural gas, hydrogen, flammable gases) above threshold quantities. Lower-tier sites must notify the competent authority and produce a major accident prevention policy; upper-tier sites must also produce a safety report and emergency plan.
Guidance for this activity
Get paid for renewable electricity you generate
How to register for the Smart Export Guarantee (SEG) to receive payment for renewable electricity you export to the grid. Covers solar PV, wind, and other small-scale renewables up to 5MW.
Read guideDevelop offshore wind projects and secure seabed leases
How to develop offshore wind projects in UK waters, from securing seabed rights through Crown Estate leasing rounds to obtaining Section 36 consent, safety zones, and grid connections. Covers England, Wales, Scotland, and Northern Ireland with differences in consenting regimes and landlords.
Read guideElectricity Supply Licence
Businesses supplying electricity to consumers in Great Britain require a Supply Licence from Ofgem.
Read guideEnvironmental Permit - Medium Combustion Plant
Medium combustion plant (MCP) with thermal input between 1MW and 50MW require an environmental permit from the Environment Agency.
Read guideEnvironmental Permit - Part A(1) Installation
Large combustion plant (50MW thermal input and above) and other major industrial installations require a Part A(1) environmental permit.
Read guideGrid Connection Agreement
All electricity generators connecting to the GB electricity network require a connection agreement with either NESO (National Energy System Operator) (transmission) or a Distribution Network Operator (DNO).
Read guideContracts for Difference (CfD)
The main government support mechanism for new low-carbon electricity generation. CfDs provide long-term price stability for renewable generators through competitive allocation rounds.
Read guideHydrogen Production Licensing and Compliance
Licensing, safety, and environmental requirements for hydrogen production facilities in the UK. Includes Low Carbon Hydrogen Standard certification, environmental permits, planning consent, COMAH compliance, and government funding through the Hydrogen Production Business Model.
Read guideDevelopment Consent Order (DCO)
Offshore wind farms exceeding 100MW and other Nationally Significant Infrastructure Projects (NSIPs) require a Development Consent Order from the Secretary of State.
Read guideCrown Estate Seabed Lease
All offshore wind developments in English and Welsh waters require a seabed lease from The Crown Estate.
Read guideMarine Licence
Activities in the marine environment (below Mean High Water Springs) require a Marine Licence from the Marine Management Organisation (MMO) in England.
Read guideOffshore Wind Development Consent Orders (DCO)
Offshore wind projects over 100MW in English territorial waters require a Development Consent Order from the Secretary of State. Understand the specific thresholds, fees, timelines and 7-stage process for offshore wind NSIPs.
Read guideCrown Estate Offshore Wind Seabed Leasing
Securing seabed rights is the critical first step for offshore wind projects in UK waters. The Crown Estate and Crown Estate Scotland manage competitive leasing rounds with option fees, operational rent, and up to 60-year lease terms.
Read guideGrid Connection for Energy Projects
How to connect electricity generation projects to the UK grid. Understand the difference between DNO and National Grid routes, the G99 connection standard, and the April 2025 Ofgem reforms that promise £5 billion in savings and faster connection timelines.
Read guideWorking in the civil nuclear industry
Regulatory compliance requirements for businesses operating in the civil nuclear industry including site licensing, security vetting, liability insurance, and decommissioning obligations under Office for Nuclear Regulation oversight.
Read guideReservoir registration and safety inspections
How to register large raised reservoirs, appoint panel engineers, comply with inspection requirements, and meet safety obligations under the Reservoirs Act 1975 and devolved legislation in Scotland and Northern Ireland.
Read guideCOMAH Compliance for Chemical Sites
Meet COMAH requirements for sites holding dangerous substances.
Read guideUnderstand deep land rights and petroleum licensing for onshore energy
How deep level land access rights work for petroleum and geothermal exploration. Covers the 300m depth threshold, PEDL licensing, hydraulic fracturing consent requirements, and the 11 statutory safeguards. Includes differences between England/Wales and Scotland.
Read guideGas supply and shipper licensing
How to obtain a gas supply, shipper, transporter, or interconnector licence from Ofgem. Covers licence types, exemptions, application process, fees, standard conditions, HSE safety case requirements, and penalties for non-compliance. Applies to Great Britain only.
Read guideGet an electricity generation licence
How to determine if you need an electricity generation licence from Ofgem (GB) or the Utility Regulator (NI). Covers licensing thresholds, exemptions, environmental permits, grid connections, and COMAH compliance for larger energy facilities.
Read guide