An Introduction to Electricity Licensing in Great Britain
Produced in partnership with Andreas Gunst of DLA Piper
An Introduction to Electricity Licensing in Great Britain

The following Energy practice note Produced in partnership with Andreas Gunst of DLA Piper provides comprehensive and up to date legal information covering:

  • An Introduction to Electricity Licensing in Great Britain
  • Requirement for a Licence
  • Requirement for a Licence—generation
  • Requirement for a Licence—transmission
  • Requirement for a Licence—distribution
  • Requirement for a Licence—supply
  • Requirement for a Licence—interconnection
  • Requirement for a Licence—Smart Metering Communications
  • Power to grant Licences
  • Licence Lite
  • More...

Requirement for a Licence

Section 4 of the Electricity Act 1989 (EA 1989) requires entities undertaking certain activities in the electricity sector to hold a licence. These are set out in more detail in the sections below.

EA 1989 provides that it is an offence to undertake licensable activities unless authorised to do so by a licence and that a person guilty of such offence will be liable on summary conviction to a fine not exceeding the statutory maximum or, on conviction on indictment, to a fine.

The Office of Gas and Electricity Markets (Ofgem) publishes the licences of all licence holders under EA 1989 in its Electronic Public Register.

Requirement for a Licence—generation

Generation refers to the 'generation' of electricity for the purpose of giving a ‘supply to any premises’ or enabling a supply to be given. This means that there are three key elements required for the requirement for a generation licence to bite.

First, there needs to be ‘generation’. The term ‘generate’ is defined to mean generation ‘at a relevant place’. In turn ‘relevant place’ is defined to mean generation in Great Britain (GB), in the territorial sea adjacent to GB or in a ‘Renewable Energy Zone’.

‘Renewable Energy Zones’ are defined by reference to section 84(4) of the Energy Act 2004 (EA 2004) and, in summary, are certain areas specified in or designated under EA 2004 that,

Popular documents