UK Electricity Licence Exemption Order 2001: A Guide to Private Wire Supply Schedule 4
Updated 6 September 2026 · By SolarNevs Research Desk, Dealer surveys + verified sources · 1 source · Method ↗
Key Takeaways
- The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001 (S.I. 2001 No. 3270) Schedule 4 governs supply licence exemptions in Great Britain.
- Class A small suppliers are exempt if they supply no more than 5 megawatts total electrical power.
- For Class A, a maximum of 2.5 megawatts of electrical power can be supplied to domestic consumers.
- Exemptions apply to on-site generators supplying over private wires or for resale under Class B or Class C.
What is the UK Electricity Licence Exemption Order 2001 Schedule 4?
The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001 (S.I. 2001 No. 3270) Schedule 4 provides a framework for specific exemptions from the requirement to hold an electricity supply licence in Great Britain (August 2026). This statutory instrument, cited as "2001 No. 3270", details the conditions under which entities can supply electricity without a formal licence. These provisions are crucial for understanding private wire supply arrangements and on-site generation.
The exemptions are outlined under "SCHEDULE 4 EXEMPTIONS FROM SECTION 4(1)(c) OF THE ACT (SUPPLY EXEMPTIONS)" and are enabled by "Article 3(1)(c) SCHEDULE 4" of the Order.
The primary provisions of Schedule 4 are summarised below:
Provision Parameter | Statutory Limitation / Requirement |
|---|---|
Schedule 4 Header Citation | "SCHEDULE 4 EXEMPTIONS FROM SECTION 4(1)(c) OF THE ACT (SUPPLY EXEMPTIONS)" |
Class A Small Suppliers Title | "Class A: Small suppliers" |
5 MW Total / 2.5 MW Domestic Cap | "supply more electrical power than 5 megawatts of which not more than 2.5 megawatts is supplied to domestic consumers." |
Own Generation Prerequisite | "do not supply any electricity except electricity which they generate themselves" |
Corporate Associate Aggregation | "electrical power supplied by a body corporate which is associated with any supplier shall be treated as supplied by that supplier." |
Class B Resale Title | "Class B: Resale" |
Class C Supplier Cross-Reference | "in circumstances such that he falls within Class C in this Schedule (in this Class referred to as a “Class C supplier”)" |
Interruption Supply Relief | "the supply of electricity which is normally available to them from a licensed supplier or a Class C supplier (their “normal supply”) is interrupted temporarily" |
Statutory Order Citation | "The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001" |
Enabling Article Header | "Article 3(1)(c) SCHEDULE 4" |
| S.I. Number Citation | "2001 No. 3270" | Figures as of August 2026.
Who Qualifies as a Class A Small Supplier?
Class A, titled "Class A: Small suppliers", provides an exemption for entities that meet specific generation and supply limits. To qualify, suppliers "do not supply any electricity except electricity which they generate themselves" (August 2026). This means the exemption is primarily for self-generators.
Furthermore, Class A suppliers must not "supply more electrical power than 5 megawatts of which not more than 2.5 megawatts is supplied to domestic consumers" (August 2026). This sets a clear cap: a total power supply limit of 5 megawatts and a specific sub-limit of 2.5 megawatts for domestic consumers.
An important consideration for Class A is the aggregation rule. The Order states that "electrical power supplied by a body corporate which is associated with any supplier shall be treated as supplied by that supplier" (August 2026). This prevents related corporate entities from circumventing the 5 megawatts and 2.5 megawatts limits by splitting their supply operations.
What are Class B (Resale) and Class C (On-site Supply) Exemptions?
Schedule 4 also details exemptions for Class B and Class C suppliers. "Class B: Resale" covers the resale of electricity under certain conditions.
Class C, referred to as a "Class C supplier", applies to specific on-site supply scenarios. An entity falls within Class C "in circumstances such that he falls within Class C in this Schedule" (August 2026). A key provision for Class C relates to "Interruption Supply Relief". This allows for the supply of electricity when "the supply of electricity which is normally available to them from a licensed supplier or a Class C supplier (their “normal supply”) is interrupted temporarily" (August 2026). This provision supports resilience in electricity supply, particularly for private wire networks where a primary supply might be temporarily unavailable.
On-site generators supplying over private wires or for resale under Class B or Class C are exempt from holding an electricity supply licence, provided they adhere to the specific conditions outlined for each class (August 2026).
How do we verify these regulations?
We verify the details of the UK Electricity Licence Exemption Order 2001 Schedule 4 by directly consulting the official UK legislation website. All information presented here, including specific citations, power limits, and class definitions, is sourced from the original statutory instrument. Our review was conducted on 23 August 2026, ensuring the accuracy of the cited provisions from the official government publication.
Navigating UK Electricity Supply Exemptions
Understanding these exemptions is critical for anyone involved in generating or supplying electricity in Great Britain, especially for private wire networks or on-site generation projects. While these exemptions can simplify operations by removing the need for a full supply licence, strict adherence to the specified limits and conditions is mandatory.
For those considering setting up or operating under these exemptions, it is important to ensure full compliance with all legal requirements. Misinterpreting or exceeding the limits, such as the 5 megawatts total power or 2.5 megawatts domestic supply for Class A, can lead to regulatory issues.
For further guidance on related UK energy regulations, you may consult our other guides:
- UK Electricity Licence Exemption Order 2001: A Guide to Generation Schedule 2
- UK Climate Change Levy Solar Exemption Guide
- UK EPB Regulations 2012: Regulation 6 Energy Performance Certificate Rules
These resources can help you understand the broader regulatory landscape for solar and electricity systems in the UK.
Frequently asked questions
What is the UK Electricity Licence Exemption Order 2001 Schedule 4?
Schedule 4 of The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001 (S.I. 2001 No. 3270) outlines specific exemptions from the requirement to hold an electricity supply licence in Great Britain (August 2026). These exemptions apply to certain classes of suppliers, including small suppliers and those involved in private wire arrangements.
What are the power limits for Class A small suppliers under Schedule 4?
Class A small suppliers are exempt if they do not supply more electrical power than **5 megawatts** in total, of which not more than **2.5 megawatts** is supplied to domestic consumers (August 2026). A prerequisite is that they only supply electricity they generate themselves.
Who qualifies as a Class C supplier under Schedule 4?
A Class C supplier is defined within Schedule 4 as a supplier who provides electricity in specific circumstances, such as when the normal supply from a licensed supplier or another Class C supplier is temporarily interrupted (August 2026). This class is relevant for on-site generation and private wire supply.
Does Schedule 4 exempt on-site generators from needing a supply licence?
Yes, on-site generators supplying over private wires or for resale under Class B or Class C are exempt from holding an electricity supply licence under Schedule 4 (August 2026). This applies provided they meet the specific conditions outlined for each class, such as the power limits for Class A or the interruption relief for Class C.
How does corporate association affect supply limits under Schedule 4?
Under Schedule 4, electrical power supplied by a body corporate which is associated with any supplier is treated as supplied by that supplier (August 2026). This aggregation rule ensures that related entities cannot circumvent the specified power limits, particularly for Class A small suppliers, by distributing their supply across multiple associated companies.
References
Related guides
More from what to buy — and how not to get cheated.