Top Tips for complying with the Ofgem Electricity Supply Licence Conditions

All of the conditions and regulations surrounding the electricity supply sector may seem daunting but in reality, staying compliant is not difficult if you stick to basic good practices. We take a look at some of the main ways your energy supply business can stay compliant. 

Good business practice

Understand what you need to report and when

The energy regulator expects energy suppliers to self-report on a variety of topics and issues throughout the course of the year.

These include things like smart meter rollout progress, complaints handling statistics and how you’re complying with the energy price cap. The Ofgem website provides a list of all the areas you’ll need to report on and the deadlines that go with it.

Get organised and make sure you have the data and reports you need well ahead of time to avoid being punished.

Also read: How can smaller energy suppliers be competitive?

Make a mistake? Own up to it

You see headlines all the time in the media slating energy suppliers for overcharging customers or generally creating stressful situations for consumers. In these scenarios it always pays to own up to your mistakes and be honest with the energy regulator.



Much of the electricity supply licence requires a company to treat its customers fairly, and it pays to ensure the provision of accurate, honest information. Treating your customers equally and being honest to about any errors goes a long way to ensuring your compliance.

Also read: How to Improve Consumer Trust in Energy Suppliers?

Look after the most vulnerable

The most vulnerable members of society are a key concern for Ofgem.

An energy supplier must identify customers who are most at risk and in need of extra assistance either with energy bill payment or customer service in order to be compliant with the licencing conditions.

Adding these customers to the Priority Services Register is the best way to not let any slip through the net.

Also read: Add your Customers to the Priority Service Register with Dyball’s CRM

It’s a team effort

The conditions of the electricity supply licence apply to everyone who works for and represents your energy supply business.

It’s not just your team that needs to be compliant but also any third parties you deal with such as price comparison websites. A breach by one of those will result in you also breaching licencing conditions.

Use available resources

There is a wealth of information available for new energy supply companies.

As well as our website you should utilise the Ofgem website and resources to get as much information on the electricity supply licence as possible. Being well informed will ensure that you will not breach the conditions and in turn you’ll avoid landing in hot water with the regulator.

Are you looking to start your own energy supply business? Get in touch with Dyball Associates and we can help you get started and become compliant with the licencing rules.

Gain your industry qualifications with Dyball Associates

Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates Ltd can help.

Further Reading

SSE Energy Services to pay £20,000 to Ofgem for poor RFI performance and SSE issues profit warning on shrinking renewables output

EDF, Igloo Energy, OVO and SO Energy ordered to refund customers over Restricted Meter Infrastructure failures by Ofgem

Ofgem lays out plans for energy suppliers to automatically refund surplus credit

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we've developed, we're supporting new UK electricity and gas suppliers get set up and start supplying.