Orbit Energy Limited - Notice of Revocation of an Electricity Supply Licence
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NOTICE OF REVOCATION OF A LICENCE PURSUANT TO SECTION 6 OF THE ELECTRICITY ACT 1989 WITH REASONS PURSUANT TO SECTION 49A
Notice of Revocation and Reasons for Decision
Whereas
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Orbit Energy Limited (company registration number 09933313), having its registered office at St Dunstans House, 201 Borough High Street, London, England, SE1 1JA (the “Company”), 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 (the “Act”).
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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.
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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 where the licensee is unable to pay its debts (within the meaning of section 123(1) or (2) of the Insolvency Act 1986).
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On 8 November 2021, the directors of Company made an application to the Chancery Division of the High Court (the “Court”) under paragraph 10 of Schedule B1 of the Insolvency Act 1986 requesting the Court:
- to make an administration order in relation to the Company; and
- to appoint proposed administrators.
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On 29 November 2021, amongst other things, the Court declared that the conditions set out in paragraph 11(a) of Schedule B1 to the Insolvency Act 1986 (for making an administration order against the Company) is met and the Company is unable to pay its debts as the fall due within the meaning of section 123(1)(e) of the insolvency Act 1986.
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Therefore, the Authority is satisfied that Schedule 2(1)(f)(i) to the Licence applies.
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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 (with effect from 00:01 on 1 December 2021) in accordance with Schedule 2(1)(f)(i) to the Licence:
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given that the Company is unable to pay its debts, the Authority is not satisfied that the Company will be 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;
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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 the Company’s customers, and payment of appropriate charges from the date on which the SoLR direction takes effect; and
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the revocation of the Licence would ultimately be necessary for SoLR arrangements to come into effect.
Therefore
- The Authority hereby gives notice that, unless the Authority otherwise directs, with effect from 00:01 on 1 December 2021, the Licence shall be revoked.
Lesley Nugent
Duly authorised on behalf of the Gas and Electricity Markets Authority
29 November 2021
Main document
[Orbit Energy Limited - Revocation of an Electricity Supply licence [PDF, 67.09KB]