Notice

Standard conditions of Load Control Licence

Published 2 November 2026

Applies to England, Scotland and Wales

Gas and Electricity Markets Authority

Section A: Standard conditions for all licensees

Standard conditions 1 to 7:

Condition 1. Definitions for standard conditions

1. 1.1 This condition sets out the defined words and expressions used in the standard conditions of this licence (all of which begin with capital letters) and gives their definitions next to them.
2. 1.2 In this licence, unless the context otherwise requires:

Act means the Electricity Act 1989

Affiliate means any holding company or subsidiary or subsidiary undertaking of a holding company of the licensee, in each case within the meaning of the Companies Act 2006

Assurance Review means an independent, evidence-based assessment of the licensee’s cyber resilience, cyber risk management arrangements and security controls, undertaken to provide assurance regarding the CAF assessment, achievement of the applicable CAF Profile outcomes, and the effectiveness of measures used to manage cyber risks. The review shall focus on assurance outcomes and align with the wider Network and Information Systems (NIS) regulatory approach to cyber resilience assurance.

Authority the Gas and Electricity Markets Authority established under section 1 of the Utilities Act 2000

Balancing and Settlement Code means the Balancing and Settlement Code provided for in condition E1 (Balancing and Settlement Code (BSC)) of the Electricity System Operator Licence

CAF Assessment either a self-assessment or a third-party assessment as directed by the Authority of the licensee’s cyber-security posture against a relevant Cyber Assessment Framework (CAF)

Capital means the elements of a Licensee’s equity and appropriate loss-absorbing debt liabilities

Charges means Charges for the provision of Consumer-Led Flexibility (CLF)

Consequential Change a modification required to an Industry Code to which the licensee is a party, solely to give full and timely effect to a modification made to that or any other Industry Code

Consumer-Led Flexibility (CLF) means an arrangement between a Flexibility Service Provider and a Customer in relation to activities undertaken as defined by section 4(3J)(b) of the Act, unless an exempt arrangement under Schedule 6 of The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001

Contract the contract for the provision of CLF entered into between a Customer and a Flexibility Service Provider

Customer Domestic Customer or Small Business Customer of the licensee in relation to the Domestic Customer or Small Business Customer’s Energy Smart Appliance

Customer Objective means the customer objective defined in paragraph 11.1.

Cyber Assessment Framework (CAF) the CAF is a collection of cyber security guidance for organisations that play a vital role in the day-to-day life of the UK. It is aimed at helping an organisation achieve and demonstrate an appropriate level of cyber resilience in relation to certain specified vitally important functions performed by that organisation, functions that are at risk of disruption as a result of a serious cyber incident

Domestic Customer a Customer provided with or seeking to be provided with CLF located at a Domestic Premises but excludes Customers that are provided with or seeking to be provided with CLF at a premises other than Domestic Premises

Domestic Premises means premises at which a supply of electricity is taken wholly or mainly for domestic purposes

Electricity Supplier means any person who holds an Electricity Supply Licence

Electricity Supply Licence means an electricity supply licence granted or treated as granted under section 6(1)(d) of the Act

Electronic Communication a message comprising text or an image of text that: is sent over a public electronic communications network; can be stored in that network or in the recipient’s terminal equipment until it is collected by the recipient; and is in a particular form and is used for a particular purpose and the recipient of it has expressed a willingness, to the sender, to receive it in that form and for that purpose

Energy Smart Appliance (ESA) has the meaning given by section 238(2) of the Energy Act 2023, where it relates to an “ancillary appliance” “private electric vehicle” or “relevant energy smart appliance” as defined by article 2 of The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001

Exit Fee means any sum of money or other compensation which might be demanded of a Customer solely because their Contract with a Flexibility Service Provider has ended

Flexibility Service Provider means any person who holds a Load Control Licence and undertakes activity as defined by section 4(3J)(b) of the Act

Gas Supplier means any person who holds a Gas Supply Licence

Gas Supply Licence means a gas supply licence granted or treated as granted under section 7A(1) of the Gas Act 1986

Improvement Plan means a plan designed to identify what improvements will be made to the licensee’s security posture. This should include dates by when the improvements should be completed, the rationale for any development, and executive sign-off of any decisions

Industry Code means any of the following: the Balancing and Settlement Code (BSC); the Connection and Use of System Code; the Distribution Code; the Distribution Connection and Use of System Agreement; and the Grid Code

Information means information (other than information subject to legal privilege) in any form or medium and of any description specified by the Authority and includes any documents, accounts, estimates, returns, records or reports and data of any kind, whether or not prepared specifically at the request of the Authority

Information Systems and Networks means an electronic communications network within the meaning of section 32(1) of the Communications Act 2003; any device or group of interconnected or related devices which performs automatic processing of digital data; and digital data stored, processed, retrieved or transmitted by elements covered under (a) or (b) for the purposes of their operation, use, protection and maintenance

Information Systems and Networks Incidents means any event having an actual adverse effect on the security of Information Systems and Networks and which has a significant impact on the continuity of the licensable activity or service which the licensee provides

Joint Competent Authority Department for Energy Security and Net Zero (DESNZ) Secretary of State and the Authority are the designated competent authorities (acting jointly) under the Network and Information Systems Regulations 2018^{[footnote 1]}

Last Resort Supply Direction means a direction given by the Authority to an Electricity Supplier that specifies or describes the premises to be supplied with electricity in accordance with standard condition 8 of the Standard conditions of electricity supply licence (Obligations under Last Resort Supply Direction) or, a direction given by the Authority to a Gas Supplier that specifies or describes the premises to be supplied with gas in accordance with standard condition 8 of the Standard conditions of gas supply licence (Obligations under Last Resort Supply Direction)

Liquidity means the resources that a licensee can convert into ‘cash’ as soon as needed and with minimal loss in value to meet liabilities as they fall due, including under adverse circumstances

Load Control Activity means activity undertaken by a Load Controller as defined by section 4(3J)(a) of the Act unless the activity is exempt under Schedule 6 of The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001)

Load Controller means any person who holds a Load Control Licence and undertakes activity as defined by section 4(3J)(a) of the Act

Load Controller System (or Load Control System) means any systems which are operated by or on behalf of a Load Controller and used in whole or in part for: constructing load control communications to Energy Smart Appliances; sending load control communications to Energy Smart Appliances; receiving, sending, storing, using or otherwise carrying out any processing in respect of load control communications with Energy Smart Appliances; and receiving responses or alerts from Energy Smart Appliances, intended for the Load Controller

Material means more than negligible (de-minimis)

Material Economic and Operational Assets are those assets, mechanisms or arrangements used or needed by the licensee to run its CLF or Load Control Activity business and meet its obligations with such assets, mechanisms or arrangements including, but not limited to, premises, facilities, staff, equipment, IT systems and brand name

Non-CLF Product means any goods and/or services that could not reasonably be considered as being directly related to the provision of CLF to the Customer

Operator of Essential Services (OES) means an entity designated or deemed to be designated under Regulation 8 of the Network and Information Systems Regulations 2018 as an operator of essential services in relation to its activities, being an organisation that provides a service which is essential for the maintenance of critical societal or economic activities, where the provision of that service depends on network and information systems, and an incident affecting those systems would have significant disruptive effects on the provision of that service

Principal Terms means, in respect of any form of Contract, the terms that relate to: Charges; services to be provided under the Contract, including CLF as well as any Tied Bundle; the duration of the Contract (including, but not limited to, the duration of any fixed term periods and any arrangements for renewing or extending the duration of the Contract or any fixed term periods); the rights to end the Contract (including any obligation to pay an Exit Fee); the nature of any Rewards offered; and options for and implications of signing the Energy Smart Appliance up to CLF with another Flexibility Service Provider

Quality mean characteristics that make a source of funding best suited to allow a firm to absorb losses unambiguously on an ongoing basis, including under adverse circumstances

Recommend means communicating (whether in Writing or orally) to a Customer information about one or more CLF arrangements in a way which gives, or is likely to give, the Customer the impression that a particular CLF arrangement is suitable for their characteristics and/or preferences

Regulation means Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast)

Relevant CAF Profile means the applicable set of Cyber Assessment Framework outcomes and requirements applicable to the licensee, as specified by the Authority or the Secretary of State and revised from time to time;

Relevant Guidance this refers to any guidance including (without limitation) that which has been produced by the Joint Competent Authority, the Authority or the Secretary of State designed to help licensees interpret the licence requirements

Remedial Actions means planned actions taken to correct an identified issue or a deficiency including non-conformance, control weakness issue identified during an assurance activity and to reduce the risk of the issue recurring

Representative in relation to the licensee, means any person directly or indirectly authorised to represent the licensee in its dealings with Customers

Rewards any financial or non-financial benefit awarded to a Customer by a Flexibility Service Provider as a result of the Customer’s CLF

Risk Assessment a documented and regularly reviewed assessment of cyber security risks to the systems, networks, data and services supporting load control activities, including the identification, analysis and evaluation of risks and the measures in place to manage those risks

Significant Code Review a review of matters in relation to the principal objective of the Authority and/or general duties (under section 3A of the Act), statutory functions and/or relevant obligations arising under EU law, which the Authority considers are likely to relate to one or more of the documents referred to in this condition, or to which the licensee is required under this licence to be a party, and concerning which the Authority has consulted

Significant Managerial Responsibility or Influence where a person plays a role in: the making of decisions about how the whole or a substantial part of a licensee’s activities are to be managed or organised; or the actual managing or organising of the whole or a substantial part of those activities

Small Business Customer has the meaning given in The Gas and Electricity Regulated Providers (Redress Scheme) Order 2008 (as and when amended to that effect)

Standards of Conduct means the standards in paragraphs 11.3(a) to (d)

Sufficient Control means having either direct ownership or legally enforceable rights over Material Economic and Operational Assets

Technical Authority means the National Cyber Security Centre who act as a bridge between industry and government, providing a unified source of advice, guidance and support on cyber security and are part of Government Communications Headquarters

Tied Bundle means a bundled service including a Non-CLF Product that is offered as part of, or which is in any way linked to, CLF

Vulnerable Situation where the personal circumstances and characteristics of each Domestic Customer create a situation where he or she is: significantly less able than a typical Domestic Customer to protect or represent his or her interests; and/or significantly more likely than a typical Domestic Customer to suffer detriment or that detriment is likely to be more substantial

Writing includes writing sent or received by Electronic Communication, and “Written” shall be construed accordingly

Condition 2. Interpretation of standard conditions

General rules of interpretation

1. 2.1 Unless the context otherwise requires, any word or expression defined in the Act, the Utilities Act 2000 or the Energy Act 2023 has the same meaning when used in the standard conditions of this licence.
2. 2.2 Unless the context otherwise requires, any reference in the standard conditions of this licence to an Industry Code, an agreement or a statement is a reference to that code, agreement or statement as modified, supplemented, transferred, novated or replaced from time to time and any reference to a statute or subordinate legislation is a reference to that statute or subordinate legislation as amended or re-enacted from time to time.
3. 2.3 The heading or title of any section, standard condition, schedule, paragraph or sub-paragraph in the standard conditions of this licence is for convenience only and does not affect the interpretation of the text to which it relates.
4. 2.4 Unless the context otherwise requires:
   1. a) any reference in the standard conditions of this licence to a section, standard condition, schedule, paragraph or sub-paragraph is a reference to it in the standard conditions of this licence
   2. b) any reference in a standard condition of this licence to a paragraph or sub-paragraph is a reference to it in that standard condition and
   3. c) any reference in the standard conditions of this licence to any natural or legal person includes that person’s successors

1. 2.5 If the conditions of this licence are subsequently modified, any reference in this licence to a provision of the conditions of this licence is to be read as a reference to the corresponding provision of the relevant conditions (so far as the context permits).
2. 2.5A Unless the context or a standard condition otherwise requires words and expressions in the singular include the plural and words and expressions in the plural include the singular.
3. 2.6 References to “the licensee” in this licence are references to the person to whom this licence has been granted or treated as granted.

Performance of obligations

1. 2.7 Where any obligation in this licence is required to be performed by a specified date or time or within a specified period and the licensee has failed to do so, the obligation will continue to be binding and enforceable after the specified date or time or after the end of the specified period, without prejudice to all rights and remedies available against the licensee in relation to its failure.

Specific application of powers

1. 2.8 Unless a contrary intention appears, any power of the Authority under any provision of this licence:

   1. a) to give a direction, consent, derogation, approval or designation is a power:

      1. i) to give it to such extent, for such period of time and subject to such conditions as the Authority thinks reasonable in all the circumstances of the case and

      2. ii) to revoke or amend it (after consulting with the licensee) or give it again under that power and

   2. b) to make a determination or a decision is a power:

      1. i) to make it subject to such conditions as the Authority thinks reasonable in all the circumstances of the case and

      2. ii) to make it again under that power

2. 2.9 Any direction, consent, derogation, determination, approval, designation, decision or other instrument given or made by the Authority under this licence will be in Writing.

Date to be specified

1. 2.10 In each case in which the Authority may specify a date under the standard conditions of this licence, it may specify:

   1. a) that date or

   2. b) the means by which that date is to be determined

Continuing effect

1. 2.11 Anything done under or because of a standard condition of this licence, which is in effect immediately before that standard condition is modified, has continuing effect for so long as it is permitted or required by or under the modified standard condition.

2. 2.12 Without prejudice to the generality of paragraph 2.11, every direction, consent, determination, designation, approval, decision or other instrument given or made by the Authority or by a licensing scheme made under Schedule 7 to the Utilities Act 2000 in relation to a standard condition of this licence, which is in effect immediately before that standard condition is modified, has continuing effect for so long as it is permitted or required by or under the modified standard condition.

Specific Application of Powers - Secretary of State

1. 2.13 Unless a contrary intention appears, any power of the Secretary of State under standard condition 6, 8, or 9 of this licence to give a direction, is a power:

   1. a) to give it to such extent, for such period of time and subject to such conditions as the Secretary of State thinks reasonable in all the circumstances of the case and

   2. b) to revoke or amend it (after consulting with the licensee) or give it again under that power

Condition 3. Operational capability

1. 3.1 The licensee must ensure it has and maintains robust internal capability, systems and processes to enable the licensee to comply with relevant legislative and regulatory obligations.

2. 3.2 Flexibility Service Providers must ensure they have and maintain robust internal capability, systems and processes to enable the Flexibility Service Provider to efficiently and effectively:

   1. a) serve each of its Customers and

   2. b) identify likely risks of Customer harm and to mitigate any such risks

Meeting the operational capability principle

1. 3.3 The licensee must have Sufficient Control over the Material Economic and Operational Assets used or needed to run its business.

Guidance

1. 3.4 The licensee must have regard to any guidance on standard condition 3 (including in respect of definitions which appear in standard condition 1) which, following consultation, the Authority may issue and may from time to time revise.

Exception to compliance with condition 3

1. 3.5 The licensee is not required to comply with standard condition 3 to such extent and subject to such conditions as the Authority may from time to time direct.

Condition 4. Financial responsibility principle

1. 4.1 The Licensee must act in a manner to ensure that it is able to meet its reasonably anticipated financial liabilities as they fall due on an ongoing basis.

Reporting key events

1. 4.2 Licensees must notify the Authority, in such form or manner as the Authority may from time to time specify:

   1. a) as soon as reasonably practicable and in any event within five working days of the licensee becoming aware there is a Material risk of any change occurring that could have a Material adverse effect on the licensee’s ability to comply with the financial resilience licence obligations and

   2. b) - as soon as reasonably practicable and in any event within five working days of the licensee becoming aware of any change which has occurred that could have a Material adverse effect on the licensee’s ability to comply with the financial resilience licence obligations

Exception to compliance with condition 4

1. 4.3 The licensee is not required to comply with standard condition 4 to such extent and subject to such conditions as the Authority may from time to time direct.

Condition 5. Ongoing fit and proper requirement

1. 5.1 The licensee must not appoint or have in place a person in a position of Significant Managerial Responsibility or Influence who is not a fit and proper person to occupy that role.

2. 5.2 The licensee must:

   1. a) have and maintain robust processes, systems and governance in place to ensure that any person holding a position of Significant Managerial Responsibility or Influence in the licensee is fit and proper to occupy that role and

   2. b) carry out regular assessments on such person(s) to ensure that they remain fit and proper to occupy that role.

1. 5.3 In complying with paragraphs 5.1 to 5.2, the licensee must have regard to and take account of all relevant matters including, but not limited to, whether the individual has:

   1. a) been responsible for, contributed to or facilitated any serious misconduct or mismanagement (whether unlawful or not) in the course of carrying out a regulated activity (or, providing a service elsewhere which, if provided in Great Britain, would be a regulated activity)

   2. b) any relevant unspent criminal convictions in any jurisdiction in particular fraud or money laundering

   3. c) any insolvency history, including undischarged bankruptcy, debt judgements and County Court judgements

   4. d) been disqualified from acting as a director of a company

   5. e) been a person with Significant Managerial Responsibility or Influence at a current or former licensed Gas Supplier or Electricity Supplier in respect of whose Customers’ premises the Authority issued a Last Resort Supply Direction (including where they were a person with Significant Managerial Responsibility or Influence at that licensed Gas Supplier or Electricity Supplier within the 12 months prior to the Last Resort Supply Direction being issued) and

   6. f) been refused, had revoked, restricted or terminated any form of authorisation, or had any disciplinary, compliance, enforcement or regulatory action taken by any regulatory body in any jurisdiction whether as an individual, or in relation to a business in which that person held Significant Managerial Responsibility or Influence

1. 5.4 The licensee must have particular regard to circumstances in which the relevant person has a background in the energy sector in Great Britain and the previous actions of that person resulted in or contributed towards significant consumer or market detriment.

Exception to compliance with condition 5

1. 5.5 The licensee is not required to comply with standard condition 5 to such extent and subject to such conditions as the Authority may from time to time direct.

Condition 6. Provision of information to Authority and Secretary of State

1. 6.1 After receiving a request from the Authority for Information that it may reasonably require or that it considers may be necessary to enable it to perform any functions given or transferred to it by or under any legislation, including any functions conferred on the Authority by or under the Regulation, the licensee must give that Information to the Authority when and in the form requested.
2. 6.2 After receiving a request from the Secretary of State for Information that they may reasonably require or that they consider may be necessary to enable them to perform any functions given or transferred to them by or under any legislation, the licensee must give that Information to the Secretary of State within the time and in the form requested.
3. 6.3 The licensee is not required to comply with paragraph 6.1 or 6.2 if the licensee could not be compelled to produce or give the Information in evidence in civil proceedings before a court.
4. 6.4 After receiving a request from the Authority for reasoned comments on the accuracy and text of any Information relating to the licensee’s activities under or pursuant to this licence which the Authority proposes to publish under section 48 of the Act, the licensee must give such comments to the Authority when and in the form requested.
5. 6.5 The Authority’s and the Secretary of State’s power to request Information under this condition is additional to its power to call for information under or pursuant to any other condition of this licence.

Condition 7. Principle to be open and cooperative

1. 7.1 The licensee must be open and cooperative with the Authority and Secretary of State.
2. 7.2 In complying with paragraph 7.1, the licensee must disclose to the Authority in Writing or orally any circumstance relating to the licensee of which the Authority would reasonably expect notice in order to perform its statutory functions, particularly actions or omissions that give rise to a likelihood of detriment to Customers. Such disclosure should be given as soon as the circumstance arises or the licensee becomes aware of it.
3. 7.3 The licensee is not required to comply with paragraphs 7.1 and 7.2 if the licensee could not be compelled to produce or give the information in evidence in civil proceedings before a court.

Section B: Standard conditions for load controllers

Standard conditions 8 to 10:

Condition 8. Requirement to comply with Industry Codes

1. 8.1 The licensee must be a party to and comply with:

   1. a) The Balancing and Settlement Code (BSC)

   2. b) Connection and Use of System Code (CUSC) and

   3. c) Distribution Connection and Use of System Agreement (DCUSA)

from the date on which it engages in Load Control Activity with premises in Great Britain.

1. 8.2 The licensee must comply with:

   1. a) The Grid Code and

   2. b) The Distribution Code

from the earlier of the date on which it offers to engage in Load Control Activity or the date on which it engages in Load Control Activity with premises in Great Britain.

1. 8.3 The requirements in paragraph 8.1(a) shall not apply to a licensee in relation to their licensed activities if that licensee has been informed in writing during the licence application process or post licence granting that it will be designated as an Operator of Essential Services, is already designated as an Operator of Essential Services, or is deemed to be designated as an Operator of Essential Services, and is formally reporting, or expected to formally report, on those activities under the Network and Information Systems Regulations 2018. Should a licensee have their designation as an Operator of Essential Service revoked by the Secretary of State (or should it cease to be designated or deemed to be designated for whatever reason by the Joint Competent Authority) then the requirements in paragraph 8.1(a) shall apply to the licensee.

Power to issue direction to relieve certain industry code obligations

1. 8.4 The Authority, after consulting with the licensee and any other person or body likely to be affected and after having regard to any guidance issued in accordance with paragraph 8.5, may give a direction to the licensee relieving it of its obligations (in whole or in part) under paragraphs 8.1 and 8.2.

2. 8.5 The Authority may issue, and may from time to time revise, guidance regarding the manner in which it will exercise its powers under paragraph 8.4.

3. 8.6 The guidance issued in accordance with paragraph 8.5 may, in particular, set out:

   1. a) the process for requesting the Authority to grant a direction under 8.4

   2. b) the type of information that is likely to be required by the Authority as part of that process and

   3. c) the criteria the Authority would have regard to in considering whether and to what extent to exercise its power to give a direction under paragraph 8.4

Consequential changes

1. 8.7 If a Consequential Change is required, the licensee must take all reasonable steps to secure, and must not take any unreasonable steps to prevent or delay, the making or implementation of that Consequential Change.

2. 8.8 Paragraph 8.7 is without prejudice to:

   1. a) any rights of appeal that the licensee may have in relation to decisions made by the Authority under the Industry Codes and

   2. b) any rights of approval, veto, or direction that the Authority or the Secretary of State may have in relation to changes to the Industry Codes.

Duty to cooperate

1. 8.9 The licensee will cooperate with the Authority, the Secretary of State and/or any person(s) appointed by the Authority or appointed pursuant to a direction of the Authority, to undertake any reasonable requests in relation to planning, project assurance and/or coordination/systems integration in order to give full effect to the conclusions of a Significant Code Review.

2. 8.10 Cooperation for the purposes of paragraph 8.9 may include but not be limited to:

   1. a) - the sharing of such information as is reasonable, and constructive participation in industry engagement in order to undertake appropriate planning of changes to IT systems or industry standard operational processes system changes pursuant to the conclusions of a Significant Code Review

   2. b) - the provision of such data as may be identified and reasonably requested in order to undertake testing and/or the population of any new central systems

   3. c) - the preparation and cleansing of such data as may reasonably be requested in order to facilitate live operation of the new central system

   4. d) - the provision of test scripts and results of any testing as may be requested by any person appointed to assure the success of any testing

   5. e) all reasonable steps to:

      1. i) meet key programme milestones for the completion of any action(s) assigned to the licensee

      2. ii) adhere to any remedial plan put in place to address any issues, delays or slippage that may impact the licensee’s ability to meet programme milestones, to the extent that failure to do so may jeopardise the successful and timely implementation of the programme

      3. iii) identify any dependencies that the licensee may have upon agents or other third-parties and secure the necessary support from such parties and

      4. iv) promptly escalate and/or resolve any disputes that if unresolved may jeopardise the fulfilment of these obligations

Compliance with Secretary of State directions for the purposes of security

1. 8.10 The Secretary of State may from time to time issue a direction addressed to the licensee which may require it to:

   1. a) take (or refrain from taking) such steps as may be set out in the direction for the purposes of:
      1. i) establishing and maintaining a secure Load Controller System for the purposes of any testing and trialling related to the installation or operation of a secure Load Control System
      2. ii) establishing and maintaining a secure Load Controller System at all other times
      3. iii) mitigating any known or anticipated risk to the security of the secure Load Controller System
      4. iv) preventing any potential failure of security in the secure Load Controller System
      5. v) remedying any actual failure of security in the secure Load Controller System and
      6. vi) preparing to address the consequences of any potential failure, or addressing the consequences of any actual failure, in the security of the secure Load Controller System
   2. b) do so by such a date as may be set out in the direction
   3. c) report to the Secretary of State or the Authority on the steps that it has taken or will take to comply with the direction
   4. d) produce documentary evidence sufficient to demonstrate its compliance with the direction.

1. 8.12 Any direction issued may be addressed to the licensee alone or to the licensee together with any one or more other secure Load Controller System(s).

Condition 9. Cyber assurance framework for load controllers

Interpretation

1. 9.1 The requirements in this condition shall not apply to a licensee, where, in respect of its load control activities carried out under this licence, the licensee has been informed in writing during the licence application process or post licence granting that it will be designated as an Operator of Essential Services, is already designated as an Operator of Essential Services or is deemed to be designated as an Operator of Essential Services under the Network and Information Systems Regulations 2018. Should a licensee have their designation as an Operator of Essential Services revoked by the Joint Competent Authority (or should it cease to be designated or deemed to be designated for whatever reason) then this condition shall apply to the licensee.
2. 9.2 In carrying out their duties under this condition, the licensee must have regard to any Relevant Guidance issued by the Joint Competent Authority, the Authority or the Secretary of State (including in respect of definitions which appear in standard condition 1), which the Authority or the Secretary of State may issue and may revise from time to time, and any guidance issued by the Technical Authority.

General Cyber Security Duties

1. 9.3 The licensee must take appropriate and proportionate technical and organisational measures to manage risks posed to the security of the information systems and networks on which its licensed activities in scope of this licence rely.
2. 9.4 The licensee must take appropriate and proportionate measures to prevent and minimise the impact of incidents affecting the security of the information systems and networks used for the provision of licensed activities in scope of this licence, with a view to ensuring continuity of those activities.
3. 9.5 The measures taken under paragraph 9.3 must have regard to the evolving threat and technology landscape and ensure a level of security of information systems and networks that is appropriate to the risks posed.
4. 9.6 The licensee must notify the Secretary of State in writing, if it becomes responsible for the control of an aggregate load of equal to or greater than 300MW, as soon as reasonably practicable and in any event within three months of initially meeting or surpassing the threshold.

Directions set by the Authority and Secretary of State

1. 9.7 The licensee must produce and submit to the Authority or authorised party directed by the Authority on an annual basis, or as directed by the Authority, a CAF Assessment. This assessment is to be carried out against the scope and relevant CAF profile outcomes in accordance with the guidance published by the Authority or Secretary of State, including any additional requirements or timing directed by the Authority or Secretary of State.
2. 9.8 The licensee must provide any further evidence or take any other appropriate action to support the CAF Assessment submitted in accordance with paragraph 9.7, as may be reasonably requested by the Authority or authorised party directed by the Authority and in a manner the Authority deems appropriate.
3. 9.9 The licensee must produce and submit to the Authority or authorised party directed by the Authority, on an annual basis or as directed by the Authority, a Risk Assessment, and where required an Improvement Plan including Remedial Actions. In preparing these documents, the licensee may use the templates published by the Authority or Secretary of State and must include any additional information reasonably required within the scope or timing directed by the Authority.
4. 9.10 The licensee must provide any further evidence or information as to any other appropriate action they are taking to support the Risk Assessment and any Improvement Plan and Remedial Actions submitted in accordance with paragraph 9.9, as may be reasonably requested by the Authority or authorised party directed by the Authority and in a manner the Authority deems appropriate.
5. 9.11 The licensee must, if directed by the Authority, or authorised party directed by the Authority, further develop the Risk Assessment and any Improvement Plan and Remedial Actions submitted in accordance with paragraph 9.9 and submit to the Authority or authorised party directed by the Authority by the date directed by the Authority.
6. 9.12 The licensee must produce and submit to the Authority or authorised party directed by the Authority, progress against its Risk Assessment and any Improvement Plan and Remedial Actions, submitted in accordance with paragraph 9.9, as directed by the Authority.
7. 9.13 The licensee must produce and submit to the Authority or authorised party directed by the Authority, on an annual basis or as directed by the Authority a report of independent assurance reviews undertaken by an independent third-party, together with a validated CAF assessment against the relevant CAF profile outcomes in accordance with paragraph 9.7. In undertaking assurance reviews, the licensee must have due regard to relevant guidance published by the Authority.
8. 9.14 The licensee must provide any further evidence, or take any other appropriate action, to support the independent third-party assurance review in accordance with paragraph 9.13, as may be reasonably requested by the Authority or authorised party directed by the Authority and in a manner the Authority deems appropriate.
9. 9.15 The licensee may apply to the Authority for a derogation relieving the licensee of its obligations under paragraphs 9.7 to, and including, 9.14 to such an extent, for a reasonable period, and subject to such conditions as may be specified by the Authority by direction after consulting the licensee.

Duty to Notify: Cyber Security Incidents

1. 9.16 Where the licensee becomes aware of any information systems and networks incident that has had or could reasonably be expected to have a significant impact on its licensed activities, the licensee must notify the Authority and the Secretary of State.
2. 9.17 The licensee must have regard to any Relevant Guidance issued by the Authority or the Secretary of State, for the purposes of this condition, in order to determine whether an information systems and networks incident has a significant impact, including but not limited to:
   1. a) the number of consumers affected by the incident
   2. b) the duration of the incident and
   3. c) the geographical area affected by the incident

1. 9.18 The notification provided by the licensee under paragraph 9.16 must include:
   1. a) detailed information about the information systems and networks incident, including the time it occurred, the duration of the information systems and networks incident, its nature and impact, and any other information that may be helpful to the Authority or Secretary of State; and
   2. b) the steps being taken to rectify its cause or mitigate its impact and the expected timeline for completion.

1. 9.19 The notification provided by the licensee under paragraph 9.16 must be provided to the Authority and the Secretary of State:
   1. a) without undue delay and in any event no later than 72 hours after the licensee is aware that an information systems and networks incident has occurred and
   2. b) in such form and manner as the Authority and the Secretary of State determines

1. 9.20 The information to be provided by the licensee under paragraph 9.18 is limited to that which may reasonably be expected to be within the knowledge of the licensee at the time of the notification.
2. 9.21 The licensee must provide any additional information and analysis on the information systems and networks incident that may be useful or relevant to the Authority or the Secretary of State in carrying out their functions after the 72 hours period prescribed in paragraph 9.19 has elapsed.
3. 9.22 The licensee must, when requested by the Authority or the Secretary of State, provide any information that the Authority or the Secretary of State may reasonably require in carrying out their functions in relation to previous or ongoing information systems and networks incidents.

Assurance of cyber security duties

1. 9.23 In addition to the requirements set out above, the licensee must, if directed by the Authority, appoint an authorised party (individual or independent third-party) approved by the Authority to conduct all or any part of an assurance review on behalf of the Authority and as defined by the Authority, to address regulatory concern, to assess identified risk or to assess the licensee’s cyber security maturity and compliance with this condition.
2. 9.24 The duty referred to in paragraph 9.23 is without prejudice to any broader obligations to cooperate under paragraph 7.1.
3. 9.25 For the purposes of carrying out an assurance review by an authorised party to assess cybersecurity maturity under paragraph 9.23, the licensee must:
   1. a) pay the reasonable costs of the assurance review if so required by the Authority
   2. b) cooperate to undertake an assurance review
   3. c) provide access to their premises at any reasonable time (except to any premises used wholly or mainly as a private dwelling) if there are reasonable grounds to believe that entry to those premises may be necessary or helpful for the purpose of the assurance review
   4. d) allow as required, examination of any document, information, material or equipment, which is considered to be relevant for such period as is, or as the authorised party considers to be, necessary for the purposes of the assurance review
   5. e) allow access to the authorised party to seek relevant information for the purposes of the assurance review
   6. f) not intentionally obstruct the authorised party performing their functions for the assurance review
   7. g) comply with any request made by, or requirement of, an authorised party performing their functions, including any tests or exercises as part of the assurance review and
   8. h) provide any comments on draft assurance review reports as requested by the Authority in such a time as the Authority deems appropriate

1. 9.26 In addition to the general duty to cooperate with the Authority under paragraph 7.1, the licensee must also cooperate with the Authority, the Secretary of State, and any person appointed to conduct an assurance review pursuant to paragraph 9.23 and comply with any governance arrangements that may be established by the Authority or the Secretary of State in relation to any activities undertaken to support oversight or implementation under this condition. *9.27 The licensee must provide the Authority, or an authorised party directed by the Authority, with the names and contact details of individuals located in Great Britain who are authorised to act on behalf of the licensee in relation to Condition 9. The licensee must notify the Authority, or an authorised party directed by the Authority, of any change to those contact details as soon as reasonably practicable and, in any event, within one week of the change taking effect.

Condition 10. Load control check

1. 10.1 The licensee must pay due regard to the effects that the Load Control Activity could have on an Energy Smart Appliance and the electricity system and take appropriate steps to satisfy itself that appropriate controls are designed and implemented to reduce the likelihood that an unintended or adverse consequence could be realised. The licensee must also ensure that any data source that is used to inform Load Control Activity, is accurate, complete and suitable for its intended purpose, and that the data is checked for irregularities that could lead to unintended or anomalous load control outcomes.

Section C: Standard conditions for flexibility service providers

Standard conditions 11 to 14:

Condition 11. Treating customers fairly

Customer Objective

1. 11.1 The objective of this condition is for the licensee and any Representative to ensure that each Customer, is treated fairly (“the Customer Objective”).

Achieving the Standards of Conduct

1. 11.2 The licensee must, and must ensure that its Representatives, achieve the Standards of Conduct in a manner consistent with the Customer Objective.
2. 11.3 The Standards of Conduct are that the licensee and any Representative:
   1. a) behave and carry out any actions in a fair, honest, transparent, appropriate and professional manner
   2. b) provide information (whether in Writing or orally) to each Customer which:
      1. i) is complete, accurate and not misleading (in terms of the information provided or omitted)
      2. ii) is communicated (and, if provided in Writing) drafted in plain and intelligible language with more important information being given appropriate prominence
      3. iii) relates to products or services which are appropriate to the Customer to whom it is directed
      4. iv) in terms of its content and in terms of how it is presented, does not create a material imbalance in the rights, obligations or interests of the licensee and the Customer in favour of the licensee and
      5. v) is sufficient to enable the Customer to make informed choices about their CLF provided by the licensee
   3. c) in relation to customer service arrangements:
      1. i) make it easy for a Customer to contact the licensee
      2. ii) act promptly and courteously to put things right when the licensee or any Representative makes a mistake and
      3. iii ) otherwise ensure that customer service arrangements and processes are complete, thorough, fit for purpose and transparent
   4. d) in relation to Domestic Customers in Vulnerable Situations:
      1. i) seek to identify each Domestic Customer in a Vulnerable Situation, in a manner which is effective and appropriate, having regard to the interests of the Domestic Customer and
      2. ii) when applying the Standards of Conduct in paragraphs (a) to (c) above, do so in a manner which takes into account any Vulnerable Situation of each Domestic Customer identified in accordance with (d)(i) above or otherwise

Scope of condition

1. 11.4 Standard condition 11 applies to all activities of the licensee and any Representative which are activities to which this licence applies and which involve, or otherwise relate to, dealings with a Customer.
2. 11.5 Standard condition 11 does not apply in respect of the amount or amounts of any Rewards given to Customers as a result of a Load Control Activity.
3. 11.6 Standard condition 11 applies to the exercise of a licensee’s discretion to apply or waive any fee or charge.

Guidance

1. 11.7 The licensee must have regard to any guidance on standard condition 11 (including in respect of definitions which appear in standard condition 1) which, following consultation (which may be conducted before this condition takes effect), the Authority has issued, may issue and may from time to time revise (following further consultation).

Exception to compliance with condition 11

1. 11.8 The licensee is not required to comply with standard condition 11 to such extent and subject to such conditions as the Authority may from time to time direct.

Condition 12. Recommending suitable services and prohibiting mis-selling

1. 12.1 The licensee must only Recommend and must ensure that its Representatives only Recommend, to a Customer, CLF which are appropriate to that Customer’s characteristics and/or preferences.
2. 12.2 The licensee must not, and must ensure that its Representatives do not, mislead or otherwise use inappropriate tactics, including high pressure sales techniques, when selling or marketing to Customers.
3. 12.3 The licensee must make the Principal Terms clear to Customers ahead of time when agreeing a Contract and after a Contract is entered into.

Exception to compliance with condition 12

1. 12.4 The licensee is not required to comply with standard condition 12 to such extent and subject to such conditions as the Authority may from time to time direct.

Condition 13. Allow customers to exit a service

1. 13.1 The Contract must clearly outline the steps that must be taken by the Customer if the Customer is no longer able or no longer willing to continue participating in the CLF being provided by the licensee. These steps should not be unduly onerous, and the notice period the Customer must provide must not be unreasonably long.
2. 13.2 The licensee must not act in any way that unduly prevents, restricts, or delays a Customer from entering into CLF provided by another Flexibility Service Provider.

Exception to compliance with condition 13

1. 13.3 The licensee is not required to comply with standard condition 13 to such extent and subject to such conditions as the Authority may from time to time direct.

Condition 14. Requirement that fees charged by flexibility service providers which are associated with a customer’s service exit must be proportionate

1. 14.1 Any Exit Fee payable must be:
   1. a) proportionate and
   2. b) must not exceed the direct economic loss to the licensee resulting from the Customer’s termination of the Contract, including the costs of any Non-CLF Product comprised in any Tied Bundle that has already been provided to the Domestic Customer as part of the Contract

Exception to compliance with condition 14

1. 14.2 The licensee is not required to comply with standard condition 14 to such extent and subject to such conditions as the Authority may from time to time direct.

1. The NIS Regulations 2018 ↩