Most of the conditions included in the gas distribution licence relate to domestic suppliers, although some are only applicable to non-domestic providers. As with the electricity market, there are laws and industry codes you must comply with.

All gas shippers and suppliers must comply with current EU and UK legislation, so it’s important to be aware of the laws and gas supplier codes relating to your business.

• The Energy Acts 1976, 1983, 2004, 2008, 2010, 2011, 2013 and 2016
• The Gas Act 1986
• The Competition Act 1998
• The Utilities Act 2000
• The Enterprise Act 2002
• The Gas and Electricity (Consumer Complaints Handling Standards) Regulations 2008
• EU Third Package legislation 2009
• EU regulation on energy market integrity and transparency 2011
• The Consumer Rights Act 2015

In addition to these energy specific laws, there are other pieces of legislation to be aware of too. These include topics relating to health and safety, data protection and consumer protection.

As well as the laws, the gas supply licence is underpinned by a set of industry codes which licensees are required to maintain and comply with. Briefly, these codes are:

• Uniform Network Code (UNC) - The UNC code provides a framework for the legal and contractual supply of gas in the UK. The rules enforced under the code help to ensure competition is fair, and concern things like the balancing of the gas system, network planning and the allocation of capacity within the network. More information is available at Ofgem, and the Code Administrator is the Joint  Office of Gas Transporters.
• Independent Gas Transporter Uniform Network Code (iGT UNC) - The IGT UNC code aims to streamline the arrangements of independent gas transporters. IGTs still maintain they own network codes for things not covered by this code. It is estimated that around one million domestic homes are connected to IGT networks. More information is available at Ofgem, and the Code Administrator is Gemserv.
• Supply Point Administration Agreement (SPAA) - The SPAA code is concerned with the operational arrangements between independent energy suppliers and gas transporters in the retail market. It provides governance for the supplier to supplier processes involved in transferring customers between services. More information is available at Ofgem, and the Code Administrator is Electralink .
• Smart Energy Code (SEC) - The Smart Energy Code applies to both electricity supply licences and gas supply licences, and relates to the provision and management of smart metering. More information is available at Ofgem and the Code Administrator is SECAS.

In addition to these industry wide codes, most independent gas suppliers also sign up to a number of voluntary codes of practice. These include codes relating to energy switching, accurate billing, prepayment meters, closed account balances and vulnerable customers.

If you’re looking into how to set up an energy supply company, it’s a good idea to be aware of these codes as they ensure you are running an ethical, compliant business. Dyball’s energy supplier CRM system and energy billing software can help you run your energy supply business lawfully and efficiently.

In order to comply with the conditions of the gas supply licence, it’s important to be aware of your obligations once you obtain an Ofgem gas supply licence. 

Compliance is not difficult as long as you are operating within the law. However, taking the time to familiarise yourself with the guidance and standards applicable to the gas supply industry will help ensure your success.We’ve put together some tips for gas supply licence compliance which will help you stay on track:

• Know your reporting commitments  - Ofgem’s monitoring and evaluation of energy suppliers is done via self-reporting. Some of the issues you’ll be expected to report on include standards of performance, complaints, customer numbers, the energy price cap and smart meter rollout.
• An honest business is a compliant business  - The standards of conduct aim to ensure you treat each customer fairly. This means behaving in an honest, fair, transparent and professional manner, as well as providing accurate information to customers.
• Take care of vulnerable customers  - Suppliers need to pay particular attention to customers who are in vulnerable situations. This comes back to treating all customers fairly, but it might constitute implementation of the Priority Services Register or other methods in order to identify customers who may need your help.
• Work with all your representatives to uphold the gas supply licence conditions  - It’s not just you who needs to be aware and work towards compliance. The gas supply licence conditions apply to everyone in your business, as well as those representing your business (including, for example, price comparison services who refer to you).
• Use the guides from Ofgem to inform your operations  - Ofgem have produced a whole library of information relating to Ofgem supply licences, so a thorough understanding of gas supply licence conditions is expected. Take the time to read their publications and familiarise yourself with the way the gas supply licence works and how different parts interact with each other.

If you are a newly-licensed gas supplier, we recommend you take a look at Ofgem's page for independent energy suppliers. This details how Ofgem supports, manages and guides suppliers to achieve consistent compliance, and also contains links to various sources of further and very helpful information.

It is possible to become exempt from the requirement of having an Ofgem gas supply licence. If you plan to  undertake any activities with gas but wish to apply for an exemption, you are advised to take legal guidance from a specialist, and to discuss your plans with  BEIS  as well.

 If you require further support to complete your Ofgem application and obtain your gas supply licence, Dyball Associates can help. All of our pre-accredited  ‘off the shelf’ supply businesses  have already been granted a gas supply licence. Our proven track record of successful energy consultancy will ensure you go on the market fast and that you maintain compliance throughout your business operations.. 

Contact us  today to find out more.