SCHEDULES

SCHEDULE 20Conduct of energy administration

Part 4Other modifications

Modifications of 1986 Act

43

In section 5 of the 1986 Act (effect of approval of voluntary arrangements) after subsection (4) insert—

“(5)

Where the company is in energy administration, the court shall not make an order or give a direction under subsection (3) unless—

(a)

the court has given the Secretary of State or the Gas and Electricity Markets Authority a reasonable opportunity of making representations to it about the proposed order or direction; and

(b)

the order or direction is consistent with the objective of the energy administration.

(6)

In subsection (5) “in energy administration” and “objective of the energy administration” are to be construed in accordance with Schedule B1 to this Act, as applied by Part 1 of Schedule 20 to the Energy Act 2004.”

44

(1)

Section 6 of that Act (challenge of decisions in relation to voluntary arrangements) is amended as follows.

(2)

In subsection (2) for “this section” substitute “ subsection (1) ”.

(3)

After that subsection insert—

“(2A)

Subject to this section, where a voluntary arrangement in relation to a company in energy administration is approved at the meetings summoned under section 3, an application to the court may be made—

(a)

by the Secretary of State, or

(b)

with the consent of the Secretary of State, by the Gas and Electricity Markets Authority,

on the ground that the voluntary arrangement is not consistent with the achievement of the objective of the energy administration.”

(4)

In subsection (4) after “subsection (1)” insert “ or, in the case of an application under subsection (2A), as to the ground mentioned in that subsection ”.

(5)

After subsection (7) insert—

“(8)

In this section “in energy administration” and “objective of the energy administration” are to be construed in accordance with Schedule B1 to this Act, as applied by Part 1 of Schedule 20 to the Energy Act 2004.”

45

In section 129(1A) of that Act (commencement of winding up), the reference to paragraph 13(1)(e) of Schedule B1 includes a reference to section 157(1)(e) of this Act.