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Energy Act 2008

The power of partial revocation

391.The Schedule also inserts clauses into relevant licences which apply when more than one person holds the licence. Whilst the Minister already has the power to revoke the entire licence in the circumstances set out below (on account of the licence being joint and several in nature) this provision supplements that power by giving the Minister a power to revoke the interests of one or more, rather than all, of the persons which are the licensee. This power applies where:

  • the person or persons concerned become bankrupt or insolvent;

  • there is a change of control of the person or persons concerned and the person or persons fail to take steps to address the Minister’s objections to that change in control; or

  • the person or persons concerned cease to have a fixed place of business in the UK from which operations under the licence are carried out.

392.Obligations and liabilities arising before the partial revocation of an interest in a licence are not affected by the partial revocation.

393.Where a licence interest is revoked in relation to one person on the licence, the person whose interest has been revoked remains jointly and severally liable for any obligations arising before the partial revocation takes place. After partial revocation, the rights, obligations and liabilities associated with the licence continues to have effect in respect of all the remaining persons on the licence. In practice, the Secretary of State would expect to consult the non-defaulting parties before exercising this power of partial revocation.

394.Subsection (5) of section 77 provides that the power of partial revocation only applies if the event happens after the relevant provisions of the Schedule come into force.

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