Smart Secure Electricity Systems: proposed class exemptions from the requirement to hold a load control licence
We’re seeking views on proposed class exemptions from the requirement to hold a load control licence in respect of a new load control licensing framework being introduced as part of the SSES programme under the Electricity Act 1989.
Applies to England, Scotland and Wales
Documents
Details
The Secretary of State for the Department for Energy Security and Net Zero proposes to make Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) Order [2027] (the Order) under section 5(1) of the Electricity Act 1989.
This Statutory Notice gives notice of, and invites representations on, the proposed Order.
The proposed Order forms part of the Smart Secure Electricity Systems (SSES) Programme, under which the government is introducing a licensing framework for load control activities to ensure appropriate protections for consumers and the electricity system are in place as markets in energy smart appliances and consumer-led flexibility services continue to grow. Class exemptions within this framework are intended to be a proportionate approach to regulation at the current stage of market development, focusing licensing requirements on load control activities that present the greatest potential risks, as well as opportunities, to consumers and the electricity system.
The proposed Order would amend the Electricity (Class Exemptions from the Requirement for a Licence) Order 2001 to create three class exemptions from the requirement to hold a load control licence.
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Class A. Applies to Load Controllers and Flexibility Service Providers (FSPs) who undertake activity only in relation to energy smart appliances that are not within the scope of the SSES licensing regime (i.e. not private electric vehicles and electric vehicle smart chargepoints, electrical heating appliances, domestic battery energy storage systems, and ancillary appliances which control these technologies).
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Class B. Applies to FSPs who provide flexibility services only to consumers who are not domestic consumers or small business consumers.
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Class C. Applies to persons who carry on any load control activity only for the purpose of benefitting consumers and not for the purpose of providing services to any persons— (i) operating a transmission or distribution system in Great Britain or offshore waters, or (ii) engaged in the wholesale trading of electricity in Great Britain.
In addition to these proposed exemptions, the government is also considering whether further exemptions may be appropriate in relation to small Load Controllers and FSPs.
The requirement to hold a load control licence will be introduced through The Electricity Act 1989 (Load Control Licence) Regulations 2026. Once in force, the Regulations will make it an offence to carry out load control activity without a licence or an exemption.
This Statutory Notice and proposed Order form part of an interlinked set of SSES Programme policies including:
- incoming Load Control Licensing Regulations 2026
- Phase 1 ESA draft regulations
- tariff interoperability
- enduring governance
- and builds on the policy proposals in the 2024 Delivering a Smart Secure Electricity System consultation and its government response
The Statutory Notice should be read alongside the government response to this consultation and an associated Ofgem decision document.
Please submit responses online by 11.59pm on 7 Sepember 2026.