These pages provide guidance and information on the licensing process.
Whom are these pages for?
- Existing licensees who want to apply for extensions or restrictions.
- Those who want to apply for a new licence.
I want to enter the gas and/or electricity markets, what should I be thinking about?
First, you need to decide what activities in the markets you want to do. We strongly suggest that you seek independent legal advice on your ideas and how best to comply with industry rules and regulations, as Ofgem is unable to provide you with legal advice.
Secondly, you need to check whether the activity you are proposing is a ‘licensable activity’ (see our page on this at Licensable activities) and, if so, whether you fall within an exemption or exception (see our page on this at Exemptions and exceptions).
Thirdly, if you are proposing to carry out a licensable activity and do not fall within an exemption or exception you must apply for the relevant licence. To find out how to apply please see our Applications page.
Those who carry out licensable activities are obliged to comply with the terms of their licence (including Standard Licence Conditions) and any relevant industry codes from the date their licence is granted. We therefore strongly suggest that potential applicants contact Xoserve, Elexon, Gemserv and/or National Grid to discuss any code requirements and seek independent legal advice on their ability to comply.
Ofgem Guidance Documents Criteria
Ofgem’s decision to grant or refuse a licence application is made in line with our published criteria and our “Gas and Electricity Licence Applications - Guidance Document”. This guidance sets out the procedures that Ofgem follows when assessing all applications and our objective and non-discriminatory criteria for deciding whether to grant a licence.