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Electricity Industry Act 2010

Electricity industry governance - Monitoring and enforcement - Authority's powers and procedures

49: Authority may suspend trading in case of insolvency

You could also call this:

“Authority can pause trading if a company is in financial trouble”

The Authority can stop trading for a generator or purchaser if they have money problems. This can happen if they can’t pay their debts, are going bankrupt, or are closing down their business.

If you’re a generator or purchaser and you’re having these kinds of problems, the Authority might not let you make bids or offers anymore. They’ll decide when this starts, but it will be after your money troubles begin.

Even if you can’t trade, you still have to follow the rules about quality as much as you can.

After the Authority stops your trading, a few things can happen:

The Authority might let you start trading again.

The Authority might ask the Rulings Panel to end your ability to trade for good.

You can ask the Rulings Panel to look at why the Authority stopped your trading. The Rulings Panel can then decide to let you trade again or keep the stop in place.

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Part 2 Electricity industry governance
Monitoring and enforcement: Authority's powers and procedures

49Authority may suspend trading in case of insolvency

  1. This section applies to a generator or purchaser that—

  2. is unable to pay its debts; or
    1. calls a meeting for the purpose of Part 14 of the Companies Act 1993; or
      1. is adjudicated bankrupt; or
        1. in the case of a company, society, or partnership, has a receiver or statutory manager or similar person appointed in respect of it or of all or any of its assets; or
          1. is put into liquidation.

            1. A generator or purchaser is adjudicated bankrupt if,—

            2. in the case of a partnership, all of the partners are adjudicated bankrupt; or
              1. in the case of an individual, that individual is adjudicated bankrupt.

                1. The Authority may suspend the generator's or purchaser's rights to make bids or offers under the Code, with effect from a time to be determined by the Authority, which must be a time later than the relevant event under subsection (1).

                2. Despite any suspension of trading ordered by the Authority, the generator or purchaser must continue to meet its common quality obligations under the Code, to the extent that the suspension order permits.

                3. After a suspension order under this section takes effect,—

                4. the Authority may order that any rights that were suspended be reinstated in respect of the generator or purchaser; and
                  1. the Authority may apply to the Rulings Panel for a termination order in respect of the generator or purchaser; and
                    1. the generator or purchaser may apply to the Rulings Panel to review the suspension by the Authority; and the Rulings Panel may, on review, exercise all the powers that the Authority has under subsection (3) and paragraph (a) of this subsection.

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