Insolvency Act 1986

233 Supplies of gas, water, electricity, etc. E+W+S

(1) This section applies in the case of a company where—

(a) an administration order is made in relation to the company, or

(b) an administrative receiver is appointed, or

(c) a voluntary arrangement under Part I, approved by meetings summoned under section 3, has taken effect, or

(d) the company goes into liquidation, or

(e) a provisional liquidator is appointed;

and “the office-holder” means the administrator, the administrative receiver, the supervisor of the voluntary arrangement, the liquidator or the provisional liquidator, as the case may be.

(2) If a request is made by or with the concurrence of the office-holder for the giving, after the effective date, of any of the supplies mentioned in the next subsection, the supplier—

(a) may make it a condition of the giving of the supply that the office-holder personally guarantees the payment of any charges in respect of the supply, but

(b) shall not make it a condition of the giving of the supply, or do anything which has the effect of making it a condition of the giving of the supply, that any outstanding charges in respect of a supply given to the company before the effective date are paid.

(3) The supplies referred to in subsection (2) are—

(a) a public supply of gas,

[F1 (b) a public supply of electricity,]

(c) a supply of water by [F2 a water undertaker] or, in Scotland, a water authority,

(d) a supply of telecommunication services by a public telecommunications operator.

(4) “The effective date” for the purposes of this section is whichever is applicable of the following dates—

(a) the date on which the administration order was made,

(b) the date on which the administative receiver was appointed (or, if he was appointed in succession to another administrative receiver, the date on which the first of his predecessors was appointed),

(c) the date on which the voluntary arrangement was approved by the meetings summoned under section 3,

(d) the date on which the company went into liquidation,

(e) the date on which the provisional liquidator was appointed.

(5) The following applies to expressions used in subsection (3)—

(a) “public supply of gas” means a supply of gas by the British Gas Corporation or a public gas supplier within the meaning of Part I of the M1 Gas Act 1986,

[F3 (b) “public supply of electricity” means a supply of electricity by a public electricity supplier within the meaning of Part I of the Electricity Act 1989;]

(c) “water authority"means the same as in the M2 Water (Scotland) Act 1980, and

(d) “telecommunication services” and “public telecommunications operator” mean the same as in the M3 Telecommunications Act 1984, except that the former does not include [F4 local delivery services within the meaning of Pt. II of the Broadcasting Act 1990.]

Textual Amendments

F1 S. 233(3)(b) substituted by Electricity Act 1989 (c. 29, SIF 44:1), s. 112(1)(3), Sch. 16 para. 35(1)(2)(a), Sch. 17 paras. 33, 35(1)

F2 Words substituted by Water Act 1989 (c. 15, SIF 130), s. 190, Sch. 25 para. 78(1) (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58)

F3 S. 233(5)(b) substituted by Electricity Act 1989 (c. 29, SIF 44:1), s. 112(1)(3), Sch. 16 para. 35(1)(2)(b), Sch. 17 paras. 33, 35(1)

F4 Words substituted by Broadcasting Act 1990 (c. 42, SIF 96), s. 203(1), Sch. 20 para. 43

Modifications etc. (not altering text)

C1 S. 233 applied (1.12.1994) by S.I. 1994/2421, art. 4(3)(a)

Marginal Citations

M1 1986 c. 44.

M2 1980 c. 45.

M3 1984 c. 12.