Licensing of GB electricity distribution
Licensing of GB electricity distribution

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Licensing of GB electricity distribution
  • The physical infrastructure of the GB electricity market
  • The requirement for a distribution licence
  • Exemption from the requirement for a distribution licence
  • Ofgem’s power to grant distribution licences and make Application Regulations
  • Procedure for distribution licence applications under the Application Regulations
  • Assessment criteria for distribution licence applications under the Application Regulations
  • Ofgem procedure for refusing or granting a distribution licence
  • Conditions of distribution licences
  • Distribution Licence Standard Conditions
  • More...

The physical infrastructure of the GB electricity market

In broad terms, the physical infrastructure of the Great Britain (GB) electricity market can be divided up as follows:

  1. generators—these installations produce the electricity. They are connected to what is colloquially referred to as ‘the grid’, so that they can ‘export’ electricity for conveyance to the consumer’s premises. For more information on generators generally, see Practice Notes: Great Britain electricity generation, distribution and supply licensing and exemptions regime and The Great Britain electricity market—an introduction

  2. interconnectors—interconnectors are high-voltage connections between the electricity systems of two countries; this allows electricity to be traded across borders. Interconnectors share a number of physical characteristics with offshore transmission lines but are licensed separately and are subject to different regulatory obligations. For more information, see Practice Notes: Great Britain electricity interconnectors and The Great Britain electricity market—an introduction

  3. transmission system—the ‘national electricity transmission system’ (NETS) is made up of several connected, high-voltage networks that are owned separately, but operated collectively by the ‘system operator’ or ‘SO’ (National Grid Electricity System Operator Limited (NGESO)). There are three onshore ‘transmission owners’ (TOs) responsible for developing and maintaining the onshore NETS in their respective geographical ‘transmission areas’, and an increasing number of offshore transmission owners (OFTOs) responsible for the transmission links between individual offshore wind farms and the rest of the NETS. For more information,

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