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Green Network Energy Ltd- Notice of revocation of a gas shipper licence

NOTICE OF REVOCATION OF A LICENCE PURSUANT TO SECTION 7A OF THE GAS ACT 1986 WITH REASONS PURSUANT TO SECTION 38A Date: 3 February 2021

Notice of Revocation and Reasons for Decision

Whereas1.  Green Network Energy Ltd (company registration number 09523066), having its registered office at 3rd Floor, Renaissance Building, Dingwall Road, Croydon, England, CR0 2NA (the “Company”), is the holder of a Gas Shipper Licence (the “Licence”) granted or treated as granted under Section 7A(2) of the Gas Act 1986 (the “Act”).

2.  Section 7B(3) of the Act provides that a licence granted or treated as granted under the Act may be revoked in accordance with any term contained in it.

3.  Schedule 2(1)(f)(i) to the Licence provides that the Gas and Electricity Markets Authority (the “Authority”) may at any time revoke the Licence on giving not less than 24 hours’ notice where the licensee is unable to pay its debts (within the meaning of section 123(1) or (2) of the Insolvency Act 1986).

4.  On 28 January 2021, the Authority made an application to the Chancery Division of the High Court (the “Court”) under Part 8 of the Civil Procedure Rules for a declaration to the effect that:

4.1.  the Company is unable to pay its debts (within the meaning of section 123(1)(e) and (2) of the Insolvency Act 1986); and

4.2.  therefore the condition as set out in Schedule 2(1)(f)(i) of the Licence is satisfied.

5.  On 29 January 2021, the Court issued an order making a declaration to the effect set out in paragraph 3 above and, therefore, the Authority is satisfied that Schedule 2(1)(f)(i) of the Licence applies.

6.  For the following reasons, the Authority has decided that, in order to protect the interests of consumers, it is appropriate to give notice to revoke the Licence (with effect from 05:01 on Friday, 5 February 2021) in accordance with Schedule 2(1)(f)(i) of the Licence:

6.1.  given that the Company is unable to pay its debts, the Authority has revoked the Company’s gas and electricity supply licences and appointed a supplier of last resort (“SoLR”) for its retail customers pursuant to its powers under condition 8 of the Standard Conditions for Gas Supply, in order to ensure continuity of supplies of gas to the Company’s supply customers and payment of appropriate charges from the date on which the SoLR direction takes effect; and

6.2.  given that the Company is unable to pay its debts and that its financial position will be further undermined by the revocation of its supply licences and loss of its retail customers, the Authority is not satisfied that, should the Company seek to ship gas to any premise pursuant to the Licence, the Company would be able to continue to provide or otherwise procure the services necessary for shipping gas nor that it would be able to pay charges under the industry arrangements.

Therefore

7.  The Authority hereby gives notice that, unless the Authority otherwise directs, with effect from 05:01 on 5 February 2021 the Licence shall be revoked.

Lesley Nugent

Duly authorised on behalf of the Gas and Electricity Markets Authority