If you want a licence or an extension, restriction or modification of an area to a licence you already hold, then you will need to apply to Ofgem’s Licensing team.
We suggest that you first read our guidance document, which can be downloaded by clicking here. This explains the procedures that Ofgem follows when assessing applications for gas and electricity licences as well as extensions and restrictions of licence applications. It also sets out Ofgem’s objective and non-discriminatory criteria for deciding whether to grant a licence.
How do I apply?
The manner and form in which you should apply is set out in the applications regulations:
For Gas, these are The Gas (Applications for Licences and Extension and Restrictions of Licences) Regulations 2010 (SI No 2155) - PDF, 78Kb - link opens in a new browser window
For Electricity, these are The Electricity (Applications for Licences, Modification of an Area and Extensions and Restrictions of Licences) Regulations 2010(SI No 2154) - PDF, 82Kb - link opens in a new browser window
These regulations also tell you: (i) the fee for each type of application; and, (ii) the minimum information you must provide.
You must send us in writing a signed application containing all the information/copy documentation set out in the relevant application regulations together with payment of the fee.
You can send applications to:
(i) licensing@ofgem.gov.uk; or,
(ii) the Licensing Team, Ofgem, 9 Millbank, London SW1P 3GE.
Payments should be made as follows:
(i) BACS or CHAPS to
Bank: Citibank, 25 Canada Square, Canary Wharf, London E14 5LB
Account Name: GBS Re Ofgem
Account Number: 12316110
Sort Code: 08-33-00
Swift code: CITIGB22
IBAN: GB40CITI08330012316110
(ii) Cheques payable to GBS Re Ofgem.
What happens next?
We will acknowledge receipt of your application as soon as reasonably practical. If any information is missing, or we require further information at this stage we will inform you. If you fail to supply the missing or further information within the deadline given, we will consider your application as cancelled.
If your application is complete, or you supply the missing/further information within the deadline given, and we have received confirmation that your payment has cleared, we will write to confirm your application as ‘duly made’.
We will then send you a template notice for you to complete and sign together with details of how to publish it (e.g. via our website). You will need to send this back to us and confirm how it is to be published within 10 working days. Examples of notices can be found at: Application Notices.
Notices must be published for at least 28 days to allow any representations to be made to us by Ofgem’s policy teams, or third parties.
Ofgem will also carry out a series of checks to verify the information you provide in your application and will verify your VAT number with HMRC, as well as consider any representations received in response to the notice.
If the results are satisfactory and the notice period has expired a licence is likely to be issued. If the results are unsatisfactory, further questions will be asked of you. Depending on the outcome of the questions, a licence may be granted or refused. If you fail to provide a satisfactory response to these further questions, a licence may be refused.
We may propose to refuse an application where, amongst other things:
• the applicant is insolvent;
• any persons named in the application are:
- disqualified from acting in connection with the affairs of a company;
- have relevant unspent convictions;
• the applicant has previously had a licence revoked or refused.
If we propose to refuse a licence application, the applicant will be given a notice which explains what further information, if any, is needed. The notice will state that:
• we propose to refuse the application;
• give the reasons why we propose to refuse the application; and,
• specify the time within which representations may be made.
If you wish to appeal against a decision to refuse a licence application, you may make representations about why you disagree with our proposal to refuse the application within 21 days of the date of the notice. Further information on our refusal and appeals procedure - PDF, 226Kb - link opens in a new browser window.
We aim to process licence applications within 45 working days from our confirmation that the application is duly made. This process may take considerably longer if further questions are necessary or there is a delay in receiving information from you.
What does a licence look like?
See examples of granted licences - link opens in a new browser window.
What are the Standard Licence Conditions that will apply?
In 2001, The Secretary of State determined a set of standard licence conditions for each licensable activity. Licensees are obliged to comply with the standard licence conditions for their type of licence from the day the licence is granted. It is important that applicants understand the duties and obligations imposed by Standard Licence Conditions.
The electronic Public Register
The electronic Public Register (ePR) is composed of documents placed on the Ofgem Public Register since October 2001 together with consolidated up-to-date versions of licence conditions. The ePR will, in line with Ofgem’s Better Regulatory Practice duties, make regulation of the gas and electricity markets more transparent. However, ePR users should note that the ePR does not replace the formal Public Register held at Ofgem’s London Offices. While every effort has been made to ensure that consolidated conditions are correct they are not formal Public Register documents and should not be relied on.
I need to comply with codes once I have a licence, who might I contact about signing up to these?
Elexon
The rules and governance for wholesale trading and energy settlement in England and Wales are included in the Balancing and Settlement Code (BSC) for England & Wales and its supporting documentation. The BSC trading arrangements are administered by Elexon. For more information visit Elexon's website - link opens in a new browser window.
Mrasco
The framework for activities associated with meter registration is contained within the Master Registration Agreement (MRA). The MRA Service Company (MRASCo) established by MRA signatories manages the operation and development of the agreement and its supporting documentation. The services required by MRASCo are, in turn, sub-contracted to Gemserv. More information may be found on Mrasco's website - link opens in a new browser window.
Gemserv
The services required by MRASCo are sub-contracted to Gemserv Limited. For more information visit Gemserv's website - link opens in a new browser window.
Xoserve
Xoserve is jointly owned by the five gas distribution network companies and National Grid’s gas transmission business. Xoserve provides transportation transactional services (including energy recording, invoicing, and balancing services) on behalf of each of the network companies to gas shippers. For more information visit Xoserve's website - link opens in a new browser window.
Other useful websites about the industry codes are:
(All links below open in a new browser window)
The Joint Office of Gas Transporters (UNC)
Grid Code, Connection and Use of System Code (CUSC) and System Operator - Transmission Owner Code (STC)
Distribution Code
Supply Point Administration Agreement (SPAA)
Independent Gas Transporters’ UNC (iGT UNC) Distribution Connection and Use of System Agreement
Market Monitoring
As part of Ofgem's market monitoring of the electricity and gas supply markets, Ofgem receives data from electricity and gas suppliers regarding their domestic and non-domestic non-half hourly customers. Ofgem also sends the data to Consumer Focus, to help in compiling their complaints statistics, and the DECC. For Ofgem to continue with its monitoring procedures you will be asked to provide domestic and non-domestic non-half hourly data on a monthly basis in an Ofgem prescribed proforma from when you start to supply domestic customers. It is currently not necessary to send data if you are supplying only non-domestic customers. The proforma is available from the further reading section of this page. The data should be sent to: marketmonitoring@ofgem.gov.uk five weeks after the end of the month to which the data applies.