Legal background Special administration regime
Many of the sections in the Act in relation to the SAR mirror those that apply to other energy licensees as set out in the Energy Act 2004. These are explained in more detail in the commentary on provisions of the Act below. The SAR provides for a special administration order to be sought by the Secretary of State (or the Authority with agreement of the Secretary of State) from a court. The order will provide that for the period during which the order remains in force the affairs, business and property of the DCC shall be managed by a person appointed by the court to ensure that the DCC continues to perform its functions under the DCC Licence until the DCC is rescued as a going concern, or transferred to another company (or companies) as a going concern. Any transfer would require approval by the Secretary of State.