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Licences and licence conditions

Check what licence you need and which conditions you must meet to work in an energy market.

Energy markets include generating, moving and supplying energy.

There is a set of standard licence conditions for each licensable activity. As a licensed company, you must comply with your conditions from the day your licence is granted. Read about compliance and enforcement.

You must also sign up to and comply with energy codes. Read about energy codes.

Types of gas licences

Types of electricity licences

Other types of licence

Types of conditions

Exemptions from requiring a licence

There are some instances when you will not need to apply for a licence. Exemptions can apply to individual cases or a class of activity and may be unconditional or subject to certain conditions including length of time.

The Gas Act 1986, the Electricity Act 1989 and the Energy Act 2023 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 are, in fact, exempt from the need to hold licences.

Schedule 2A of The Gas Act 1986 (as amended) sets out certain exceptions to the need to hold a licence. It is for the applicant to ascertain whether the proposed activity falls within the scope of an exception.

We are unable to advise you on exemptions or exceptions. We recommend you consult the Gas Act 1986, the Electricity Act 1989 and the Energy Act 2023, your legal counsel and the Department for Energy Security & Net Zero. You may wish to view examples of gas exemption orders and electricity exemption orders.

Supply licence guidance

The gas and electricity supply licences set out the conditions that all energy suppliers must adhere to in order to supply energy to domestic and non-domestic consumers.

We have compiled a range of guides to help suppliers and other stakeholders navigate and understand the obligations of energy suppliers.