Ring fence review: energy networks call for input
Current ring fence arrangements
Summary
This section outlines what the current ring fence licence conditions are.
Existing licence conditions
The existing licence conditions are not standardised across all sector licences. Some sectors may contain additional sector-specific conditions.
The ring fence licence conditions are:
- Restriction on Activity and Financial Ring Fence
- Availability of Resources
- Credit Rating of the Licensee
- Restriction on Indebtedness and Transfer of Funds
- Ultimate Controller Undertaking
- Restriction on the Disposal of Relevant Assets
- Prohibition of Cross-Subsidies
- Network Independence
- Sufficiently Independent Directors (SIDs)
These can be found in the licences and licence conditions on the Ofgem website under:
- Electricity Distribution Licence
- Electricity Transmission Licence
- Gas Transporter Licence
Before you give us your views
Read the current ring fence arrangements chapter in our call for input (PDF).