Smart Secure Electricity Systems: Implementing the load control licensing regime

Details of outcome

Reducing supplier regulatory burden and alignment with wider reforms 

The load control licence will include powers to derogate from certain conditions (as set out in the DESNZ consultation response), alongside bespoke application evidence requirements. We will apply targeted derogations where electricity supply licence protections already provide sufficient consumer protection. 

Licence application routes  

Electricity supply licence holders will have already undergone regulatory scrutiny relevant to much of the consumer-facing Flexibility Service Provider (FSP) activity of the load control licence. We have decided to implement three different application pathways: 

• Pathway A: Non-supplier operators will need to provide evidence requirements against all relevant areas  
• Pathway B: Non-domestic electricity supply licence holders will need to provide evidence requirements, except those relevant to managerial and financial controls  
• Pathway C: Domestic and non-domestic electricity supply licence holders will need to provide evidence requirements except those relevant to managerial and financial controls, and certain consumer protection requirements  

Revocation for Network and Information System (NIS) non-compliance 

We will include, as a last resort, the ability to revoke a licence for non-compliance with Network and Information System (NIS) regulations, as set out in the revocation schedule (Annex B). 

Tacit authorisation 

We have decided that operators are automatically granted a licence if Ofgem has not processed the application within a defined period initially set at nine months.  

Consumer protection guidance  

We have decided to retain the Consumer Protection Guidance as consulted (Annex D in our consultation). Read the full load control guidance. 

Note: Some of the files are not fully accessible. If you need an alternative format, please contact sses.licensing@ofgem.gov.uk. 

Read the full outcome

Original consultation

Consultation description

We are consulting on our proposed approach to implementation of a new licensing regime for load control under the Smart Secure Electricity Systems (SSES) programme, developed in collaboration with the Department for Energy Security and Net Zero (DESNZ). DESNZ are also consulting on the draft licence conditions and scope of the licence, and we encourage stakeholders to review both consultation packages together for a comprehensive understanding of the proposed regime. 

The load control licensing regime aims to regulate load control arrangements delivered via Energy Smart Appliances (ESAs) like EV chargers and heat pumps, in order to ensure consumer protection, cyber security, and grid stability. 

We expect the regulations to come into effect by March 2027 and the requirement to hold a licence to undertake load control activity to come into effect by March 2028, after a 12-month transition period. 

We are seeking views on the following documents as part of this consultation package:

• Smart Secure Electricity Systems: Implementing the load control licensing regime consultation that sets out our proposed approach to operationalising the new licensing regime, including our proposed application process, monitoring and data requirements, and approach to compliance and enforcement
• Annex C: Draft load control application form which illustrates what evidence prospective licensees will need to provide to apply for a load control licence
• Annex D: Draft load control consumer protection guidance that provides detailed guidance on the consumer protection measures that licensees will be required to follow

Decisions and the outcome of this consultation package will be published on this consultation webpage following the closing of the consultation period.

Who should respond

We seek feedback from a wide range of stakeholders to ensure our decisions are balanced and well-informed. This includes but is not limited to:

• prospective licensees
• consumer advocacy groups
• industry bodies
• trade associations
• any other interested parties