keep Amendments to the Class Exemptions Order 2001
This Order amends the Electricity (Class Exemptions from the Requirement for a Licence) Order 2001, extending to England, Wales, and Scotland, with effect from 16th August 2024. The Class Exemptions Order 2001 establishes categories of electricity activities that may be carried out without a licence, typically small-scale generation and supply operations.
This regulation concerns exemptions from electricity licensing requirements—meaning it REDUCES regulatory burden by allowing certain electricity activities to operate without a licence. Such class exemptions lower barriers to entry for small-scale generators and suppliers, promoting competition in the electricity market. Licensing requirements that apply uniformly to all participants, regardless of scale, create disproportionate compliance costs that disadvantage smaller players and entrench incumbents. Without these exemptions, small-scale community energy projects, micro-generators, and niche suppliers would face the same regulatory costs as large utilities, effectively preventing competition. Deleting this Order would harm Britons by raising electricity costs, reducing consumer choice, and preventing the distributed energy generation that underpins competitive markets.