Vol 15 (2018) - Issue 1

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Gas and Electricity Markets Authority v GB Energy Supply Limited [2016] EWHC 3341 (Ch)

This was an urgent out-of-hours application heard by telephone by the Honourable Mr Justice Birss.
The applicant was the Gas and Electricity Markets Authority (the 'Authority'). The Authority is the independent regulator for the gas and electricity markets and was established by the Utilities Act 2000. Section 3A of the Electricity Act 1989 and section 4AA of the Gas Act 1985 provide that the principal objective of the Authority when carrying out its functions is to protect the interests of existing and future electricity and gas consumers.

The Authority’s application related to an energy supply company, GB Energy Supply Ltd ('GB'). GB supplied electricity under an Electricity Supply Licence, in accordance with the statutory regime governing such supply. GB appeared to the Authority to be unable to pay its debts. In these circumstances, the Authority had the power to revoke the licence and establish a Supplier of Last Resort to replace the company. The company’s contracts would be transferred or deemed to have become contracts with this supplier.