Commentary on Sections Chapter 3: Special Administration Regime for Energy Licensees Section 157: Powers of court
379.This section sets out the powers of the court in relation to an energy administration order.
380.Subsection (1) sets out the court’s powers on hearing an application for energy administration.
381.Subsection (2) provides that the court can only make an energy administration order if it is satisfied that the company is insolvent, facing insolvency or that on a petition from the Secretary of State under section 124A of the Insolvency Act 1986 (c.45) it would be just and equitable (aside from the objective of energy administration) to wind up the company in the public interest.
382.Subsections (3) and (4) provide that in certain circumstances the court cannot make an energy administration order.
383.Subsection (6) provides that an interim order made under subsection 1(d) may, amongst other things, restrict the exercise of a power of the company or its directors or confer a discretion on a qualified insolvency practitioner in relation to the protected energy company.
384.Subsection (8) provides that the company will be deemed to be insolvent in accordance with sections 123 or 222 to 224 of the Insolvency Act 1986 (c.45).