GB Energy Supply Ltd - Notice of revocation of an electricity supply licence
Licence revocation
NOTICE OF REVOCATION OF A LICENCE PURSUANT TO SECTION 6 TOGETHER WITH REASONS PURSUANT TO SECTION 49A OF THE ELECTRICITY ACT 1989
Notice of Revocation and Reasons for Decision
Whereas
1. GB Energy Supply Ltd, (company registration number 8500842), having its registered office at 842 Garstang Road, Barton, Preston, Lancs, PR3 5AA, United Kingdom ("GB Energy"), is the holder of an Electricity Supply Licence ("the Licence") granted or treated as granted under Section 6(1)(d) of the Electricity Act 1989.
2. Section 6(8) of the Act provides that a Licence granted or treated as granted under the Act may be revoked in accordance with any term contained in it.
3. Schedule 2(1)(f)(i) to the Licence provides that the Gas and Electricity Markets Authority ("the Authority") may at any time revoke the Licence on giving not less than 24 hours’ notice to GB Energy where it is unable to pay its debts (within the meaning of section 123(1) or (2) of the Insolvency Act 1986).
4. On 26 November 2016, the Authority made an application to the Chancery Division of the High Court (‘the Court’) under Part 8 of the Civil Procedure Rules for a declaration to the effect that:
(a) GB Energy is unable to pay its debts (within the meaning of section 123(1)(e) or (2) of the Insolvency Act 1986) and;
(b) therefore the condition, as set out in Schedule 2(1)(f)(i) of the Licence is satisfied.
5. On 26 November the Court issued an order making a declaration to the effect set out in paragraph 4 above and therefore the Authority is satisfied that Schedule 2(1)(f)(i) of the Licence applies.
6. For the following reasons, the Authority has decided that, in order to protect the interests of consumers, it is appropriate to give notice to revoke the Licence within 24 hours in accordance with schedule 2(1)(f)(i) of the Licence:
(a) given that GB Energy is unable to pay its debts, the Authority is not satisfied that the company will able to continue to provide or otherwise procure the services necessary for supplying electricity to its customers or to pay charges under the industry arrangements;
(b) the Authority has decided to initiate the process to appoint a supplier of last resort (SoLR) pursuant to its powers under condition 8 of the Standard Conditions for Electricity Supply, in order to ensure continuity of supplies of electricity to GB Energy’s customers, and payment of appropriate charges from the date of which the SoLR direction takes effect;
(c) the revocation of the Licence would ultimately be necessary for SoLR arrangements to come into effect.
Therefore
7. The Authority hereby gives notice that, unless the Authority otherwise directs, with effect from 00:01 on 30 November 2016 the Licence shall be revoked.
The Official seal of the Gas and Electricity Markets Authority here affixed is authenticated by –
Lesley Nugent
Authorised in that behalf by the Authority