Licensable activities

The Gas Act 1986 (as amended) and The Electricity Act 1989 (as amended) (the Acts) prohibit certain activities unless the person carrying on that activity is licensed, exempt from the requirement for a licence, or eligible (under the Gas Act only) for an exception to the prohibition on unlicensed activities.

Gas

Transporter Licence

This allows the licensee to:

  • convey gas through pipes to any premises within an area authorised by the licence
  • convey gas through pipes to any pipeline system operated by another Gas Transporter, or other pipeline system specified in the licence.

Interconnector Licence

This allows the licensee to participate in the operation of a gas interconnector which is defined as:

  • co-ordinating and directing the conveyance of gas into or through a gas interconnector
  • making such an interconnector available for use for the conveyance of gas.

Shipper Licence

This allows the licensee to arrange with a gas transporter for gas to be introduced into, conveyed through, or taken out of a pipeline system operated by that gas transporter. In all instances, the purpose of the gas movement should be general or for purposes connected with the supply of gas to premises.

Supplier Licence

This allows the licensee to supply gas to any premises through pipes. A Gas Supplier Licence can allow supply to either:

  • domestic and non-domestic premises, or
  • non-domestic premises only.

Electricity

Transmission Licence

This allows the licensee to participate in the transmission of electricity for the purpose of enabling a supply to be given.

Distribution Licence

This allows the licensee to distribute electricity for the purpose of enabling a supply to be given. Electricity is distributed from the national electricity transmission system  through a low voltage network of wires to customers.

Interconnector Licence

This allows the licensee to participate in the operation of an electricity interconnector. This is defined as:

  • co-ordinating and directing the flow of electricity into or through an electricity interconnector, or
  • making such an interconnector available for use for the conveyance of electricity.

Generation Licence

This allows the licensee to generate electricity for the purpose of giving a supply to any premises or enabling a supply to be given.

Supply Licence

This allows the licensee to supply electricity to premises. An Electricity Supply Licence can be for supply to either:

  • domestic and non-domestic premises, or
  • non-domestic premises only.

Gas & Electricity 

Smart Meter Communication Licence 

This allows the licensee to provide a Smart Meter Communication Service within Great Britain.  In particular, the licensee is responsible for providing the communications service to link smart meters in homes and small businesses with the systems of energy suppliers, network operators and energy service companies.  

In September 2013, following the completion of a competitive procurement process, the Department of Energy and Climate Change (DECC) granted the new Smart Meter Communication Licence to Smart DCC Limited which is known as the Data and Communications Company (or DCC).