Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
If you own, lease or manage commercial property in England and Wales, the Electricity Act 1989 sits quietly in the background of almost everything you do with power on site. It shapes how your building connects to the grid, how you pick a supplier, what happens if supply is interrupted, and what duties fall on you as the person responsible for the premises.
Most owners only look at it when something goes wrong: a delayed connection on a fit-out, a dispute with a supplier, a safety incident, or a tenant query about metering. This page walks through the parts of the Act that matter most for commercial property, what your practical obligations look like day to day, and where the Act interacts with related safety rules you cannot ignore.
Overview
The Electricity Act 1989 is the piece of primary legislation that restructured how electricity is generated, transmitted, distributed and supplied in Great Britain. It separated the old state-run industry into distinct roles (generation, transmission, distribution and supply) and introduced a licensing regime overseen by the regulator, now Ofgem.
For commercial property, the practical effect is that you can generally choose your licensed supplier, you have a statutory right to be connected to the local distribution network in most cases, and the companies you deal with operate under licence conditions that set minimum standards of service. The Act also gives regulators and network operators powers to recover charges, disconnect for non-payment in defined circumstances, and step in where safety is at risk.
It does not sit alone. It works alongside the Electricity at Work Regulations 1989, the Electricity Safety, Quality and Continuity Regulations 2002, and a wider body of health and safety law. For a commercial landlord or occupier, the Act is less about day-to-day compliance paperwork and more about understanding the framework you sit inside when you negotiate connections, supply contracts, sub-metering arrangements with tenants, and on-site generation.
Key steps
Confirm the connection position for your site. Before any fit-out, refurbishment or change of use, check whether the existing connection capacity is sufficient. Contact the local Distribution Network Operator (DNO) for a quote if you need a new or upgraded connection. Connection charges, timescales and reinforcement costs vary widely, so get this in writing early.
Review your supply contract carefully. Commercial electricity contracts are not the same as domestic tariffs. Look at the term length, termination windows, pass-through charges, unit rates, standing charges and any take-or-pay style clauses. Diarise the renewal notice period, because missing it often rolls you onto less favourable rates.
Check responsibility for electrical safety on site. Under the Electricity at Work Regulations 1989, duty holders must keep electrical systems safe. Work out who the duty holder is for each part of the installation (landlord, tenant, managing agent) and make sure periodic inspection and testing (EICR) is scheduled and documented.
Handle sub-metering and tenant recharges properly. If you recharge tenants for electricity through sub-meters, understand the rules on maximum resale price and transparent billing. Keep meter readings, invoices from your supplier and the calculation method on file so tenants can see how their charge was worked out.
Plan disconnections and changes in supply. If a site is going dark for refurbishment, a unit is being handed back, or you are switching supplier, give proper notice and follow the supplier's process. Unplanned disconnections or disputed final bills can create months of delay, so build a clear paper trail of instructions and meter readings.
Q Does the Electricity Act 1989 apply to my commercial lease?
The Act does not sit inside your lease, but it shapes the framework your lease operates in. Provisions about who pays for connections, who holds the supply contract, how sub-metering works and who is responsible for electrical safety will often reference or rely on rights and duties that flow from the Act and related regulations. Always read the lease and the supply arrangements together.
Q Can my landlord choose the electricity supplier for my unit?
In a multi-let building with a landlord-held supply, the landlord often contracts with one supplier and recharges tenants through sub-meters. Where a unit has its own direct meter and supply point, the occupier can usually choose their own licensed supplier. The answer depends on the lease, the metering arrangement at the property and any existing supply contract in place.
Q What is the difference between the supplier and the network operator?
The supplier is the company that sells you the electricity and sends the bill. The Distribution Network Operator (DNO) owns and maintains the cables, substations and connection point serving your building. You choose your supplier, but you cannot choose your DNO, it is determined by the geography of your site. Connections, faults and capacity upgrades are DNO matters, not supplier ones.
Q Who is responsible for electrical safety in a commercial property?
The Electricity at Work Regulations 1989 place duties on employers, the self-employed and those in control of premises to ensure electrical systems are safe and maintained. In a let property, responsibility is typically split between landlord and tenant depending on the demise and the lease terms. A periodic EICR and a clear written allocation of duties is the sensible baseline.
Q Can a supplier disconnect a commercial property for non-payment?
Suppliers have defined rights to disconnect non-domestic customers for unpaid bills, subject to their licence conditions and contract terms. The process usually involves notices and an opportunity to pay or dispute. Disconnection has serious operational consequences for a business, so it is almost always worth engaging with the supplier early rather than ignoring demands.
Q Do I need consent to install on-site generation such as solar panels?
On-site generation can involve planning permission, building control, landlord consent under the lease, DNO approval for grid connection, and potentially a generation licence or exemption depending on scale. Smaller rooftop solar on commercial buildings is common, but each element needs checking. The DNO application in particular should be factored into the project timeline.
Q What happens if I want to increase my site's power capacity?
A capacity upgrade is dealt with by the DNO, not your supplier. You apply for a new connection offer, which sets out the cost, timescale and any network reinforcement needed. Costs can be significant, particularly in constrained areas, and lead times can run to many months. Start this conversation early in any project that will add heavy electrical load.
Electricity connections, supply contracts and safety duties in commercial property can overlap in confusing ways, especially across landlord and tenant responsibilities. An experienced legal adviser can help you think it through on a call, focused on your specific situation based on what you describe.
✓A plain-English walk-through of the issues based on what you describe
✓Practical perspective on connection, supply and safety responsibilities in your situation
✓What to watch out for before you sign a supply contract or lease variation
✓Clear answers to your specific questions about the Electricity Act framework
Personal call · For information only · Independent advisers
Written & reviewed by
Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.
