The Smart Meter Communication Licensee Administration (England and Wales) Rules 2020

• (3) The fourth column shows, in relation to an offence, the maximum punishment by way of fine or imprisonment which may be imposed on a person convicted of the offence in the way specified in relation to it in the third column (that is to say, on indictment or summarily), a reference to a period of years or months being to a term of imprisonment of that duration.

• (4) The fifth column shows (in relation to an offence for which there is an entry in that column) that a person convicted of the offence after continued contravention is liable to a daily default fine; that is to say, the person is liable on a second or subsequent conviction of the offence to the fine specified in that column for each day on which the contravention is continued (instead of the penalty specified for the offence in the fourth column of the Schedule).

• (5) Section 431 of the 1986 Act (summary proceedings), as it applies to England and Wales, has effect in relation to offences under these Rules as to offences under the 1986 Act.

Review

197

• (1) Before the end of the review period, the Secretary of State must—

• (a) carry out a review of these Rules;

• (b) set out the conclusions of the review in a report; and

• (c) publish the report.

• (2) The report must in particular—

• (a) set out the objectives intended to be achieved by the regulatory system established by these Rules;

• (b) assess the extent to which those objectives are achieved; and

• (c) assess whether those objectives remain appropriate, and, if so, the extent to which they could be achieved with a system that imposes less regulation.

• (3) “Review period” means the period of five years beginning with the day on which these Rules come into force.

SCHEDULE — Punishment of offences under these Rules

Signed

Robert Buckland — Lord Chancellor — 19th June 2020

I concur

Burnett of Maldon — Lord Chief Justice of England and Wales — 16th June 2020

I concur

Callanan — Lords Parliamentary Under Secretary of State — Department for Business, Energy and Industrial Strategy — 21st May 2020

Explanatory note

(This note is not part of the Rules)

EXPLANATORY NOTE

These Rules set out the procedure for the conduct of smart meter communication licensee administration (“SMCL administration”) proceedings in England and Wales. SMCL administration is a special insolvency regime specifically created for companies acting as a smart meter communication licensee (“SMCL”) in Great Britain.

The framework for the SMCL administration regime is set out in the Smart Meters Act 2018 (c. 14) (the “2018 Act”). The 2018 Act applies (with modifications) much of Chapter 3 of Part 3 of the Energy Act 2004 (c. 20), which provides for a special insolvency regime for energy companies that run and operate gas and electricity networks in Great Britain.

Only SMCLs as defined in section 2(5) of the 2018 Act may enter SMCL administration. These are companies that hold a licence granted under section 7AB of the Gas Act 1986 (c.44) or a licence granted under section 6 of the Electricity Act 1989 (c.29) to provide a smart meter communication service.

The SMCL administration process is commenced by an application to court for a smart meter communication licensee administration order, referred to as an “SMCL administration order” as defined in section 2(1) of the 2018 Act. Such an application can be made by either the Secretary of State or, with the consent of the Secretary of State, by the Gas and Electricity Markets Authority.

An insolvency practitioner appointed to manage the affairs, business and property of the SMCL is defined in section 2(2) of the 2018 Act as an SMCL administrator.

These Rules are applicable only to SMCL administration.

Part 1 of these Rules contains the construction and interpretation provisions.

Part 2 of these Rules sets out the procedure to be followed to initiate SMCL administration proceedings, including the information required for an SMCL administration order application, to whom notice of such an application needs to be delivered and who may appear at a hearing of the SMCL administration application.

Part 3 of these Rules details the initial steps to be taken in SMCL administration proceedings. These include the notification and advertisement of an SMCL administrator’s appointment and the preparation of a statement of the affairs of the SMCL. Part 3 also sets out the information that must be given to creditors in the SMCL administrator’s statement of proposals and the contents of the progress reports to be prepared by the SMCL administrator.

Part 4 of these Rules contains provisions relating to creditors’ and company meetings summoned by the SMCL administrator.

Part 5 of these Rules contains provisions relating to an application to court for authority to dispose of property of the SMCL which is subject to a security (other than a floating charge) or goods in the possession of the SMCL under a hire-purchase agreement.

Part 6 of these Rules contains provisions relating to the expenses of SMCL administration.

Part 7 of these Rules contains provisions relating to claims by and distributions to creditors of the SMCL. In particular, this Part details the procedure to be followed to prove a debt in the SMCL administration proceedings as well as the way in which such debts will be quantified and the steps to be taken where the SMCL administrator makes, or proposes to make, a distribution to creditors.

Part 8 of these Rules contains details of how the remuneration of an SMCL administrator is to be fixed by the court.

Part 9 of these Rules sets out the arrangements for ending an SMCL administration. There are specific provisions detailing the ending of an SMCL administration by court order, as well as the process by which an SMCL administration moves into either a creditors’ voluntary liquidation or dissolution of the SMCL.

Part 10 of these Rules sets out the requirements and procedures for replacing an SMCL administrator. It includes provisions relating to the resignation of an SMCL administrator, the removal of an SMCL administrator from office by court order and the SMCL administrator’s duties on vacating office.

Part 11 of these Rules contains general provisions detailing the court procedure and practice for SMCL administration proceedings. In particular this Part sets out the general requirements for court applications made during an SMCL administration, enforcement procedures, access to the court file, the cost assessment procedure for SMCL administration proceedings, provision for persons who lack capacity to manage their affairs, and the appeals process to be used in SMCL administration proceedings.

Part 12 of these Rules contains provisions for the use of proxies and representatives of corporations at meetings held during an SMCL administration, including the rights of inspection of such proxies and the procedure to be followed where a proxy-holder has a financial interest in the outcome of a resolution to be voted on at the meeting.

Part 13 of these Rules sets out the provision for the examination of persons where an application to court has been made by an SMCL administrator under section 236 of the Insolvency Act 1986 (c. 45). Section 236 of the Insolvency Act 1986 allows an SMCL administrator to apply to court for an order requiring certain persons to appear before the court to be questioned by the SMCL administrator about the company in SMCL administration.

Part 14 of these Rules contains provisions of general effect including provisions relating to the delivery of documents, the form and content of documents, service of documents, standard contents of notices and of documents delivered to the registrar of companies, the inspection and right to copies of documents, and the calculation of time periods.

Part 15 of these Rules contains miscellaneous provisions, including the power of the Secretary of State to regulate certain matters relating to the carrying out of the SMCL administrator’s functions, provisions relating to the punishment of offences and the requirement for a review.

The Schedule to these Rules contains specific details of the punishment of offences under these Rules.

An impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

Footnotes

[^f00001]: 1986 c.45, as amended by the Enterprise Act 2002 (c.40) and the Small Business, Enterprise and Employment Act 2015 (c.26). By virtue of S.I. 2017/540, some of the amendments made by the Small Business, Enterprise and Employment Act 2015 do not apply for the purposes of proceedings under the Energy Act 2004 (c.20). Section 411 of the Insolvency Act 1986 was amended by S.I. 2002/1037 and the Constitutional Reform Act 2005 (c.4), Schedule 4, paragraph 188. Section 411(3) was amended by S.I. 2007/2194 and the Banking Act 2009 (c.1), section 160. There are other amending Acts and instruments, but none is relevant.

[^f00002]: 2004 c.20. Section 159(3) was amended by the Energy Act 2011 (c. 16), section 97 and the Smart Meters Act 2018 (c. 14), section 5.

[^f00003]: 2018 c.14.

[^f00004]: Section 413 was amended by the Constitutional Reform Act 2005 (c.4), Schedule 4, paragraph 190; the Crime and Courts Act 2013 (c.22), Schedule 9, paragraph 93 and S.I. 2018/130. There are other amending Acts, but none is relevant.

[^f00005]: 1971 c.80. The Act was amended by the St Andrew’s Day Bank Holiday (Scotland) Act 2007 (asp 2). There are other amending Acts and instruments, but none is relevant.

[^f00006]: Section 79 was amended by S.I. 2009/1941.

[^f00007]: S.I. 1998/3132.

[^f00008]: 1981 c.54. Section 100 was substituted by the Constitutional Reform Act 2005 (c.4), Schedule 3, paragraph 2 and amended by the Tribunals, Courts and Enforcement Act 2007 (c.15), Schedule 11, paragraph 2.

[^f00009]: 2007 c.15.

[^f00010]: 2003 c.39. See Schedule 7 to the Act.

[^f00011]: “court” is defined in section 10 of the Smart Meters Act 2018 (c.14).

[^f00012]: Section 4(1) was amended by the Courts and Legal Services Act 1990 (c.41), section 72; the Access to Justice Act 1999 (c.22), section 69; the Constitutional Reform Act 2005 (c.4), Schedule 4, paragraph 117; and the Crime and Courts Act 2013 (c.22), Schedule 13, paragraph 14.

[^f00013]: Section 89(1) was amended by the Constitutional Reform Act 2005, Schedule 3, paragraph 3 and Schedule 11, paragraph 26.

[^f00014]: S.I. 2016/1024, as amended by S.I. 2017/366, S.I. 2017/702, S.I. 2017/1115 and S.I. 2018/130.

[^f00015]: Section 176A was inserted by the Enterprise Act 2002 (c.40), section 252 and amended by S.I. 2008/948.

[^f00016]: Schedule B1 was inserted by the Enterprise Act 2002 (c.40), Schedule 16 (as amended by S.I. 2003/2096). Rule 2(2) does not apply to references in these Rules to paragraph 14 of Schedule B1 to the 1986 Act because that paragraph has not been modified by Schedule 20 to the 2004 Act.

[^f00017]: “smart meter communication licensee” is defined in section 2(5) of the Smart Meters Act 2018 (c.14).

[^f00018]: “smart meter communication licensee administration order” is defined in section 2(1) of the Smart Meters Act 2018.

[^f00019]: Section 159 of the 2004 Act was amended by the Energy Act 2011 (c.16), section 97 and the Smart Meters Act 2018, section 5. Section 166 of the 2004 Act was amended by the Energy Act 2011, section 93. Schedule 20 to the 2004 Act was amended by S.I. 2008/948; S.I. 2009/1941; the Financial Services Act 2012 (c.21), Schedule 18, paragraph 101; and the Energy Act 2011, section 101. Schedule 21 to the 2004 Act was amended by S.I. 2011/1043.

[^f00020]: “smart meter communication administrator” is defined in section 10 of the Smart Meters Act 2018.

[^f00021]: 2007 c.29.

[^f00022]: Part 22 was amended by S.I.2001/1769, S.I. 2001/4015 and S.I. 2004/3419.

[^f00023]: Section 246A was inserted by S.I. 2010/18. Section 246A was amended by the Small Business, Enterprise and Employment Act 2015 (c.26), Schedule 9, paragraph 54; but those amendments do not apply to proceedings under the Smart Meters Act 2018, as a result of the savings made by S.I. 2017/540.

[^f00024]: Part 32 was amended by S.I. 2000/221, S.I. 2001/256, S.I. 2005/2292, S.I. 2007/2204, S.I. 2009/3390, S.I. 2011/88, S.I. 2012/2208 and S.I. 2013/262.

[^f00025]: “non-GB company” is defined in section 10(2) of the Smart Meters Act 2018.

[^f00026]: 2006 c.46. Section 1043 was amended by S.I. 2017/1212.

[^f00027]: Section 124A was inserted by the Companies Act 1989 (c.40), section 60(3) and was amended by S.I. 2001/3649 and the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c.27), Schedule 2, paragraph 27.

[^f00028]: Section 163(2) of the 2004 Act prevents an appointment from taking effect under paragraph 14 of Schedule B1 to the 1986 Act (appointment of administrator by holder of floating charge) unless the conditions in section 163(3) of the 2004 Act are met.

[^f00029]: Section 235 was amended by the Enterprise Act 2002 (c.40), Schedule 17, paragraph 24.

[^f00030]: Paragraph 49 was amended by S.I. 2008/948. It was also amended by the Small Business, Enterprise and Employment Act 2015 (c.26), Schedule 9, paragraph 10; but those amendments do not apply to proceedings under the Smart Meters Act 2018, as a result of the savings made by S.I. 2017/540.

[^f00031]: Section 231 was amended by the Enterprise Act 2002 (c.40), Schedule 17, paragraph 20 and Schedule 26.

[^f00032]: Paragraph 83 was amended by the Small Business, Enterprise and Employment Act 2015 (c.26), section 128. It was also amended by Schedule 9 to that Act, paragraph 10; but those amendments do not apply to proceedings under the Smart Meters Act 2018, as a result of the savings made by S.I. 2017/540.

[^f00033]: Paragraph 62 was amended by the Small Business, Enterprise and Employment Act 2015 (c.26), Schedule 9, paragraph 10; but those amendments do not apply to proceedings under the Smart Meters Act 2018, as a result of the savings made by S.I. 2017/540.

[^f00034]: Paragraph 99 was amended by the Deregulation Act 2015 (c.20), Schedule 6, paragraph 27.

[^f00035]: Paragraph 13A was inserted into Schedule 8 by the Small Business, Enterprise and Employment Act 2015 (c. 26), section 131.

[^f00036]: 2002 c.29.

[^f00037]: 2000 c.8. Section 382(1) was amended by the Financial Services Act 2012 (c.21), Schedule 9, paragraph 21.

[^f00038]: 1838 c.110. Section 17 was amended by the Civil Procedure Acts Repeal Act 1879 (c.59), Schedule 1, Part 1; the Statute Law Revision (No. 2) Act 1888; S.I. 1993/564 and S.I. 1998/2940.

[^f00039]: Paragraph 79 was amended by the Small Business, Enterprise and Employment Act 2015 (c.26), Schedule 9, paragraph 10; but those amendments do not apply to proceedings under the Smart Meters Act 2018, as a result of the savings made by S.I. 2017/540.

[^f00040]: Section 124 was amended by the Criminal Justice Act 1988 (c.33), section 62(2); the Companies Act 1989 (c.40), section 60(2); the Access to Justice Act 1999 (c.22), Schedule 13, paragraph 133; the Insolvency Act 2000 (c.39), section 1, Schedule 1, paragraphs 1 and 7; S.I. 2002/1240; the Courts Act 2003 (c.39), Schedule 8, paragraph 294; S.I. 2004/2326; the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c.27), section 50(3); S.I. 2006/2078; S.I. 2009/1941 and S.I. 2017/702.

[^f00041]: Paragraph 84 was amended by S.I. 2017/702. It was also amended by the Small Business, Enterprise and Employment Act 2015 (c.26), Schedule 9, paragraph 10; but those amendments do not apply to proceedings under the Smart Meters Act 2018, as a result of the savings made by S.I. 2017/540.

[^f00042]: Section 236 was amended by S.I. 2010/18.

[^f00043]: 2003 c.39. Section 92 was amended by the Constitutional Reform Act 2005 (c.4), Schedule 4, paragraph 345 and Schedule 11, paragraph 4; and the Crime and Courts Act 2013 (c.22), Schedule 9, paragraph 40 and Schedule 10, paragraph 95.

[^f00044]: Parts 44 and 47 were substituted for new Parts 44 and 47 by S.I. 2013/262.

[^f00045]: 2005 c.9.

[^f00046]: 1981 c.54. Section 3 has been amended but no amendments are relevant to this instrument.

[^f00047]: Part 52 was substituted for a new Part 52 by S.I. 2016/788. It was amended by S.I. 2017/95, S.I. 2017/889 and S.I. 2020/82.

[^f00048]: Part 29 was amended by S.I. 2002/2058, S.I. 2005/2292, S.I. 2013/262 and S.I. 2013/1974.

[^f00049]: Part 37 was amended by S.I. 2006/3435 and S.I. 2014/3299.

[^f00050]: Part 18 was amended by S.I. 2000/221.

[^f00051]: Part 31 was amended by S.I. 2000/221, S.I. 2001/4015, S.I. 2010/1953, S.I. 2011/88, S.I. 2012/2208, S.I. 2013/262 and S.I. 2013/1974.

[^f00052]: Part 6 was amended by S.I. 2008/2178, S.I. 2009/2092, S.I. 2009/3131, S.I. 2009/3390, S.I. 2011/88, S.I. 2011/1979, S.I. 2014/2948, S.I. 2015/1644.

[^f00053]: Section 246B was inserted by S.I. 2010/18.

[^f00054]: CPR rule 2.8 was amended by S.I. 2009/3390.