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Energy Act (Northern Ireland) 2011


The Schedule covers the content and effect of transfer schemes which can be made as described in section 18(3) i.e. transfers to another company or companies as a going concern of so much of the protected energy company's assets as are necessary to ensure that the objective of the energy administration is met. The transfer may include assets other than the network system (vehicles, for example) but must include enough assets to constitute a going concern as a conveyance, transmission or distribution company.  It may be the case that all of the protected energy company's assets will be transferred to one company but the protected energy company may also be separated into several going concerns; for example in the case of an electricity distribution company it might be possible to separate the assets on geographical lines creating several smaller regional distribution networks.  All transfers are subject to veto or amendment by the Department.

Paragraphs 1 to 4 of the Schedule enable a protected energy company (through its energy administrator) to make a scheme or schemes for the transfer of property, rights and liabilities to a new company subject to the approval of the Department, who in turn must consult the Utility Regulator. Paragraph 5 provides that all or part of a licence can be included in a transfer scheme, whilst paragraph 6 provides that powers and duties which fall to the old energy company (i.e. the protected energy company in respect of which the energy administration order was made) under statutory provisions can be transferred to the extent that they are exercisable or required by the new energy company given the extent of the transfer of the business to it. The Department is given the power to modify the scheme before giving approval although it will require the consent of the old energy company and the new energy company to the modifications (paragraph 3).  Similarly it may modify it subsequently with the consent of those parties and after consulting the Utility Regulator (paragraph 9).

Paragraph 7 of the Schedule deals with a number of matters which provide for the smooth transition of property, rights etc from the protected energy company to the new energy company.

Paragraphs 10 to 11 of the Schedule provide for cases where the energy company is a foreign company or foreign property, rights and liabilities are being transferred.

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Explanatory Notes

Text created by the Northern Ireland Assembly department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes accompany all Acts of the Northern Ireland Assembly.


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