Foxglove Energy Supply Ltd: Provisional Order July 2022

Orders
  • Open - Provisional Order issued
  • Provisional Order confirmed
  • Decision Proposed - Confirm Provisional Order
  • Decision Proposed - Revoke Provisional Order
  • Notice to rectify
  • Notice to revoke licence
  • Closed

Publication date

Company

Industry sector

Supply and Retail Market

Decision to confirm Provisional Order

On 11 October 2022, the Authority published the confirmation of the provisional order dated 5 July 2022, with modifications, issued to Foxglove, following the consultation period.

The Authority noted the representations received in the context of the consultation undertaken pursuant to section 26(1) of the Electricity Act 1989 and section 29(1) of the Gas Act 1986. It considered these representations carefully and is satisfied that Foxglove is contravening or is likely to contravene the financial responsibility principle (Standard Licence Condition 4B) and that no further modifications were required to the provisional order.

This confirmed provisional order requires that Foxglove address our concerns quickly and fully. Until such time as it does, the provisional order requires that Foxglove refrains from taking on new customers and removing any money from the business unless it constitutes spending essential to the operation of Foxglove’s supply business, is required to be made by virtue of a legal requirement or is otherwise approved in writing by the Authority.

Further details are contained in the order itself and the Notice of Reasons, below.

Notice of Proposal to Confirm Provisional Order

On 9 September 2022 the Authority issued its notice of proposal to confirm the provisional order dated 5 July 2022, with modifications, imposed on Foxglove on the grounds that Foxglove was contravening or is likely to contravene the financial responsibility principle (Standard Licence Condition 4B). The Notice of Proposal invited representations or objections from Foxglove in relation to the proposed confirmation by 30 October 2022. The Authority decided that the only person likely to be affected was Foxglove and therefore, in accordance with section 26(2)(a) of the Electricity Act 1989 and section 29(2)(a) of the Gas Act 1986, the notice was only issued to Foxglove.

Issue of Provisional Order

On 5 July 2022, the Authority issued a provisional order to Foxglove Energy Supply Ltd (Foxglove) in accordance with Section 25(2) of the Electricity Act 1989 and Section 28(2) of the Gas Act 1986.

The Authority considered that Foxglove is contravening or is likely to contravene the financial responsibility principle (Standard Licence Condition 4B).

The particular behaviour of concern giving rise to the making of the provisional order was that Foxglove:

  • Was not at all times managing responsibly costs that could be Mutualised;
  • Was not taking appropriate action to minimise such costs; and
  • Did not have adequate financial arrangements in place to meet its costs at risk of being Mutualised.

The provisional order required Foxglove to address our concerns quickly and fully. Until such time as it did, the provisional order banned Foxglove from taking on new customers and removing any money from the business unless it constituted spending essential to the operation of Foxglove’s supply business.