Exemptions from requiring a licence
The Acts allow the Secretary of State to make orders giving exemptions from the need to hold licences.
This means that some activities that fall within the definitions of a licensable activity (see our Licensable activities page) are, in fact, exempt from the need to hold licences.
Exemptions can apply to individual cases or can be on the basis of a class (type) of activity.
Exemptions when granted can be unconditional or subject to certain conditions including length of time.
It is for the applicant, seeking legal advice as required, to ascertain whether their proposed business activity falls within the scope of an exemption order.
Please note that Ofgem cannot confirm whether you fall within an exemption or give advice on the interpretation of the exemption orders.
Please contact the DECC if you wish to discuss the exemption orders, which can be viewed here for gas exemption orders and for electricity exemption orders.
Exceptions from requiring a licence
Schedule 2A of The Gas Act 1986 (as amended) sets out exceptions to the need for licences. It is for the applicant to ascertain whether the proposed activity falls within the scope of an exception. Copies of the Gas Act 1986 may be ordered from The Stationery Office Ltd (TSO) website or the Office of Public Sector Information (OPSI) website.
Advice on Exemptions and Exceptions
Ofgem cannot under any circumstances comment on whether a person carrying on an activity or proposing to carry on an activity will be exempt or excepted from the requirement to hold a licence. It is for the person carrying on, or proposing to carry on, an activity to decide whether they require a licence or benefit from an exemption or exception.
Gas and Electricity exemption orders may be downloaded from The National Archives legislation website using the links in the Further Resources section to the right of this page.