Termination clauses in supply contracts Section 16: Protection of supplies of electricity, gas, water etc - Northern Ireland
This section amends Article 197 of the Insolvency (Northern Ireland) Order 1989. The existing Article prevents utility suppliers demanding payment of outstanding charges as a condition of continuing supply to companies subject to insolvency proceedings where the insolvency office-holder requests this. The supplier can insist the office-holder personally guarantees payment of charges for supplies made while the insolvency procedure is underway. The amendments are to apply Article 197 to new categories of electricity provider and to suppliers of IT goods and services and to cover cases where utility supplies are made by a landlord. Article 197 is the equivalent for Northern Ireland of section 233 of the Insolvency Act 1986. The amendments made by section 14 correspond to those that were made to section 233 by Article 2 of the Insolvency (Protection of Essential Supplies) Order 2015 (S.I. 2015/989). They are intended to keep the Article in line with that section. They are necessary because the amendments made by sections 17 and 18 build on them.