BNetzA Notification under § 5 EnWG: Registering an Energy Supplier Correctly

Legal Basis and Scope

§ 5 of the Energiewirtschaftsgesetz (EnWG, German Energy Industry Act) obliges every company that supplies household customers with electricity or gas to notify the Bundesnetzagentur (BNetzA) without undue delay of the commencement of this activity. The term household customers is defined in § 3 No. 57 EnWG and also covers final consumers with an annual consumption below 10,000 kWh who purchase for own use in the professional, agricultural or commercial sector.

This covers not only classic municipal utilities (Stadtwerke) and supra-regional suppliers, but also:

• White-label providers and electricity suppliers with a purely online business
• Direct marketers, as soon as they supply final consumers
• Aggregators with pooled-customer business
• Tenant-electricity (Mieterstrom) and neighbourhood suppliers
• Cooperatives and municipal operations supplying end customers
• Industrial companies that pass surplus own generation on to third parties

Pure wholesalers without end-customer business, as well as balancing group managers (Bilanzkreisverantwortliche) who exclusively manage balancing groups without being a supplier themselves, are not subject to the notification requirement – but they are, as soon as they directly supply even a single household customer.

Deadlines: When the Notification Must Be Made

The law speaks of notification without undue delay after commencement of the activity. In legal practice this means: without culpable hesitation, as a rule within a few working days of concluding a contract with the first final consumer. Nevertheless, I advise submitting the notification as early as 4 to 6 weeks before the start of supply - for three reasons:

1. The BNetzA reviews the notification on its merits and may raise queries. In the case of incomplete documents, processing is extended by several weeks.
2. Market participants such as transmission system operators (ÜNB), the BDEW code-allocation office and distribution system operators (VNB) require the confirmed notification as a prerequisite for further steps (balancing group contract, market partner ID).
3. A notification that is too late may force you to unwind concluded supply contracts or postpone the start of supply – both with considerable reputational and liquidity consequences.

Typical Mistakes from Practice

In six of our own EVU foundations, the following mistakes have recurred again and again:

• Unclear market role. Anyone who notifies as a pure supplier but later manages balancing groups themselves must file a supplementary notification. Clarity from the outset saves effort.
• Missing balancing group connection. Without a signed balancing group contract (Bilanzkreisvertrag) with a transmission system operator, the BNetzA returns the notification. The contracts must be in place before the notification.
• AGB without electricity labelling. The obligation to label the electricity mix under § 42 EnWG is frequently forgotten. The BNetzA demands proof within three months at the latest.
• IT connection unresolved. Anyone who outsources EDIFACT market communication to a service provider must prove that provider's GPKE/MaBiS certification. Own IT solutions must be audited before the start of supply.
• Unrealistic supply date. Dates that do not match the status of contracts with network operators lead to queries. Realistic: 4-6 weeks lead time after the notification has been made.

Relationship to Other Notification and Approval Obligations

The BNetzA notification does not replace other obligations. In parallel or subsequently, further steps are required:

• Supplier permit from the main customs office (Hauptzollamt). For the electricity tax, electricity suppliers require a permit under § 4 StromStG (German Electricity Tax Act). This must be applied for at the competent main customs office.
• Marktstammdatenregister (MaStR, Core Energy Market Data Register). Registration as an electricity supplier within one month of the commencement of the activity.
• BDEW code allocation / EIC. Without a market partner ID, market communication is not possible.
• Balancing group contract (Bilanzkreisvertrag). Contractually governed with the competent transmission system operator (50Hertz, Amprion, TenneT, TransnetBW).
• Concession levy and equalisation mechanism. Registration with VNB (distribution system operator) and ÜNB (transmission system operator) for the correct settlement of the levies.

You will find a complete overview of all steps in the guide to the legal foundations as well as in our further articles on the balancing group contract and GPKE/MaBiS certification.

Sanctions for Violations

§ 95 EnWG classifies the violation of the notification obligation as an administrative offence. The following are possible:

• Fines up to EUR 100,000 per individual violation
• Prohibition of supply by the BNetzA
• Obligations to unwind contracts already concluded
• Exclusion from market communication procedures until notification
• Civil-law claims for damages from harmed market partners

In practice, the BNetzA rarely imposes fines at the full amount – provided the company responds cooperatively and submits the missing notification without delay. In the case of repeated violations or obvious intent, however, the level of sanctions rises considerably.

Frequently asked questions