Source: http://www.legislation.gov.uk/ukpga/2018/14/crossheading/special-administration-regime/enacted
Timestamp: 2018-06-17 22:42:09
Document Index: 121368257

Matched Legal Cases: ['art 3', 'art 1', 'art 3', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 3', 'art 3', 'art 1', 'art 1', 'art 1']

2Smart meter communication licensee administration orders
(1)A smart meter communication licensee administration order (referred to in the smcl administration provisions as an “smcl administration order”) is an order which—
(a)is made by the court in relation to a smart meter communication licensee; and
(2)The person appointed in relation to a company for the purposes of an smcl administration order is the smart meter communication administrator of the company.
(3)The smart meter communication administrator of a company must manage its affairs, business and property, and exercise and perform all the powers and duties of a smart meter communication administrator, so as to achieve the objective set out in section 3.
(4)In relation to an smcl administration order applying to a non-GB company, references in this section to the affairs, business and property of the company are references only to its affairs and business so far as carried on in Great Britain and to its property in Great Britain.
(5)In the smcl administration provisions—
“smart meter communication licensee” means the company which is the holder of the relevant licences; and
“relevant licences” means—
the licence granted under section 7AB of the Gas Act 1986 to provide a smart meter communication service, and
the licence granted under section 6 of the Electricity Act 1989 to provide a smart meter communication service.
3Objective of a smart meter communication licensee administration
(1)The objective of a smart meter communication licensee administration is to secure—
(a)that the licensee’s functions under the relevant licences are performed efficiently and economically, and
(b)that it becomes unnecessary, by one or both of the following means, for the smcl administration order to remain in force for the purpose mentioned in paragraph (a).
(2)Those means are—
(a)the rescue as a going concern of the company subject to the smcl administration order; and
(3)A transfer falls within this subsection if it is a transfer as a going concern—
(b)as respects different parts of the undertaking of the company subject to the smcl administration order, to two or more different companies,
of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the smart meter communication licensee administration.
(4)The means by which transfers falling within subsection (3) may be effected include, in particular—
(a)a transfer of the undertaking of the company subject to the smcl administration order, or of a part of its undertaking, to a wholly-owned subsidiary of that company; and
(5)The objective of a smart meter communication licensee administration may be achieved by a transfer falling within subsection (3) to the extent only that—
(a)the rescue as a going concern of the company subject to the smcl administration order is not reasonably practicable or is not reasonably practicable without such a transfer;
(b)the rescue of that company as a going concern will not achieve that objective or will not do so without such a transfer;
(c)such a transfer would produce a result for the company’s creditors as a whole that is better than the result that would be produced without it; or
(d)such a transfer would, without prejudicing the interests of those creditors as a whole, produce a result for the company’s members as a whole that is better than the result that would be produced without it.
(6)The Secretary of State may by regulations made by statutory instrument—
(a)specify activities carried out by a smart meter communication licensee under the relevant licences to which a smart meter communication administrator must give priority in—
(i)managing the affairs, business and property of the licensee, and
(ii)otherwise exercising and performing the powers and duties of a smart meter communication administrator; and
(b)make provision about how the smart meter communication administrator is to give priority to specified activities.
(7)A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.
4Application of certain provisions of the Energy Act 2004
(1)Sections 156 to 167 of, and Schedules 20 and 21 to, the Energy Act 2004 (special administration regime for energy licensees) apply in relation to an smcl administration order as they apply in relation to an energy administration order within the meaning given by section 154(1) of that Act, but with the modifications set out in subsections (2) to (4).
(2)In the application of those provisions generally—
(a)for “energy administration”, in each place where it occurs, substitute “smart meter communication licensee administration”;
(b)for “energy administrator”, in each place where it occurs, substitute “smart meter communication administrator”;
(c)for “a protected energy company”, in each place where it occurs, substitute “a smart meter communication licensee”.
(3)In the application of Schedule 20—
(a)in paragraph 32(1)(d), for the words from ““energy administration application”” to “Energy Act 2004” substitute ““smart meter communication licensee administration application” means an application to the court for a smart meter communication licensee administration order under Chapter 3 of Part 3 of the Energy Act 2004, as applied by section 4 of the Smart Meters Act 2018”;
(b)in paragraph 32(1)(e), for “section 155 of the Energy Act 2004” substitute “section 3 of the Smart Meters Act 2018”;
(c)in paragraph 36, for “section 154(4) of this Act” substitute “section 2(4) of the Smart Meters Act 2018”;
(d)in paragraph 43, after “the Energy Act 2004” insert “and section 4 of the Smart Meters Act 2018”;
(e)in paragraph 44(5), after “the Energy Act 2004” insert “and section 4 of the Smart Meters Act 2018”;
(f)in paragraph 45, after “section 157(1)(e) of this Act” insert “as applied by section 4 of the Smart Meters Act 2018”;
(g)omit paragraph 46 (but see section 9 of this Act);
(h)in paragraph 47, after “Part 1 of this Schedule” insert “and section 4 of the Smart Meters Act 2018”.
(4)In the application of Schedule 21—
(a)for “old energy company”, in each place where it occurs, substitute “old licensee”;
(b)for “new energy company”, in each place where it occurs, substitute “new licensee”;
(c)in paragraph 1(b), for “section 155(3)” substitute “section 3(3) of the Smart Meters Act 2018”;
(d)in paragraph 12, for “section 155” substitute “section 3 of the Smart Meters Act 2018”.
(5)Sections 171 and 196 of the Energy Act 2004 (interpretation) apply for the purposes of the application by subsection (1) of the provisions mentioned in that subsection, but with the modifications set out in subsection (6).
(6)In the application of section 171(1)—
(a)insert, at the appropriate places, the following definitions—
““objective of the smart meter communication licensee administration” is to be construed in accordance with section 3 of the Smart Meters Act 2018;”;
““smart meter communication licensee” has the meaning given by section 2(5) of the Smart Meters Act 2018;”;
““smart meter communication licensee administration order” has the meaning given by section 2(1) of the Smart Meters Act 2018;”;
““smart meter communication licensee administration rules” means rules made under section 411 of the 1986 Act by virtue of section 159(3) of this Act, for the purpose of giving effect to this Chapter as applied by section 4 of the Smart Meters Act 2018;”;
(b)for the definition of “energy administrator” substitute—
““smart meter communication administrator” has the meaning given in section 10 of the Smart Meters Act 2018”;
(c)for the definition of “relevant licence” substitute—
““relevant licence” means either of the relevant licences within the meaning given by section 2(5) of the Smart Meters Act 2018.”
5Conduct of administration, transfer schemes, etc
In section 159(3) of the Energy Act 2004 (conduct of administration, transfer schemes, etc under Chapter 3 of Part 3 of that Act), after “2011” insert “or section 4 of the Smart Meters Act 2018”.
6Modifications of particular or standard conditions
(1)Where the Secretary of State considers it appropriate to do so in connection with the provision made by the smcl administration provisions, the Secretary of State may make—
(2)The power to make modifications under this section includes power to make incidental, consequential or transitional modifications.
(3)Before making a modification under this section, the Secretary of State must consult—
(b)such other persons as the Secretary of State considers appropriate.
(4)Subsection (3) may be satisfied by consultation that took place wholly or partly before the commencement of this section.
(5)The Secretary of State must publish every modification made under this section.
(6)The publication must be in such manner as the Secretary of State considers appropriate.
(7)A modification under subsection (1)(a) of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 or Part 1 of the Electricity Act 1989.
(8)Where the Secretary of State makes modifications under subsection (1)(b) of the standard conditions of licences of any type, the Gas and Electricity Markets Authority must—
(9)The Secretary of State’s powers under this section are exercisable only during the eighteen months beginning with the commencement of this section.
(10)In section 33(1) of the Utilities Act 2000 (standard conditions of generation, distribution and supply licences under Part 1 of the Electricity Act 1989)—
(a)in paragraph (f) omit the second “or”;
(b)at the end insert “, or
(h)under section 6 of the Smart Meters Act 2018.”
(11)In section 81(2) of the Utilities Act 2000 (standard conditions of transporter, supply and shipping licences under Part 1 of the Gas Act 1986)—
(a)for “2011 or” substitute “2011,”;
(b)for “(power to amend licence conditions)” substitute “or under section 6 of the Smart Meters Act 2018”.
(12)Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties) apply in relation to the powers of the Secretary of State under this section with respect to holders of gas licences as they apply in relation to functions of the Secretary of State under Part 1 of that Act.
(13)Sections 3A to 3D of the Electricity Act 1989 (principal objective and general duties) apply in relation to the powers of the Secretary of State under this section with respect to holders of electricity licences as they apply in relation to functions of the Secretary of State under Part 1 of that Act.
(a)references to a gas licence are to a licence for the purposes of section 5 of the Gas Act 1986 (prohibition on unlicensed activities relating to gas), and
(b)references to an electricity licence are to a licence for the purposes of section 4 of the Electricity Act 1989 (prohibition on unlicensed activities relating to electricity).
8Modifications under the Enterprise Act 2002
(1)The power to modify or apply enactments conferred on the Secretary of State by each of the sections of the Enterprise Act 2002 mentioned in subsection (2) includes power to make such consequential modifications of the smcl administration provisions as the Secretary of State considers appropriate in connection with any other provision made under that section.
(a)sections 248 and 277 (amendments consequential on that Act); and
(b)section 254 (power to apply insolvency law to foreign companies).
(3)In section 170(1) of the Energy Act 2004 (modification of Chapter 3 of Part 3 of that Act under the Enterprise Act 2002) after “2011” insert “or section 4 of the Smart Meters Act 2018”.
9Power to make further modifications of insolvency legislation
(a)provide for insolvency legislation to apply in relation to any provision made by or under the smcl administration provisions;
(b)make such modifications of insolvency legislation as the Secretary of State considers appropriate in relation to any provision made by or under the smcl administration provisions (including any insolvency legislation that is applied under paragraph (a)).
(2)In relation to regulations under subsection (1) “insolvency legislation” means—
(b)Chapter 3 of Part 3 of the Energy Act 2004, and
(c)any other provision that relates to insolvency, or makes provision by reference to anything that is or may be done under the Insolvency Act 1986, and is—
(i)contained in an Act passed before this Act or in the same Session, or
(ii)made under an Act before the regulations come into force.
(3)Provision made under subsection (1) may amend this Act.
(4)Regulations under this section are to be made by statutory instrument.
(5)Regulations under this section must not be made unless a draft of the statutory instrument containing them has been laid before Parliament and approved by a resolution of each House of Parliament.
(1)In this Act “smcl administration provisions” means sections 2 to 9 and this section.
(2)In the smcl administration provisions—
“business”, “member”, “property” and “security” have the same meanings as in the Insolvency Act 1986;
“court”, in relation to a company, means the court—
having jurisdiction to wind up the company, or
that would have such jurisdiction apart from section 221(2) or 441(2) of the Insolvency Act 1986 (exclusion of winding up jurisdiction in case of companies having principal place of business in, or incorporated in, Northern Ireland);
“modification” includes omission, addition or alteration, and cognate expressions are to be construed accordingly;
“non-GB company” means a company incorporated outside Great Britain;
“objective of the smart meter communication administration” is to be construed in accordance with section 3;
“relevant licences” has the meaning given by section 2(5);
“smart meter communication administrator” has the meaning given by section 2(2) and is to be construed in accordance with subsection (3) of this section;
“smart meter communication licensee administration order” (or “smcl administration order”) has the meaning given by section 2(1);
“smart meter communication licensee” has the meaning given by section 2(5);
“subsidiary” and “wholly-owned subsidiary” have the meanings given by section 1159 of the Companies Act 2006;
(3)In the smcl administration provisions references to the smart meter communication administrator of a company—
(a)include references to a person appointed under paragraph 91 or 103 of Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule 20 to the Energy Act 2004 and section 4 of this Act, to be the smart meter communication administrator of that company; and
(b)where two or more persons are appointed to be the smart meter communication administrator of that company, are to be construed in accordance with the provision made under section 158(5) of the Energy Act 2004, as applied by section 4 of this Act.
(4)In the smcl administration provisions a reference to the provision of a smart meter communication service has—
(a)the same meaning as in Part 1 of the Gas Act 1986 (see section 5(11) of that Act), in relation to holding of a licence under section 7AB of that Act by a company for which a smart meter communication administrator has been appointed;
(b)the same meaning as in Part 1 of the Electricity Act 1989 (see section 4(3G) of that Act), in relation to the holding of a licence under section 6(1)(f) or (1A) of that Act by a company for which a smart meter communication administrator has been appointed.