Special administration regime

3 Objective of a smart meter communication licensee administration
(1) The objective of a smart meter communication licensee administration is to secure—
(a) that the licensee's functions under the relevant licences are performed efficiently and economically, and
(b) that it becomes unnecessary, by one or both of the following means, for the smcl administration order to remain in force for the purpose mentioned in paragraph (a).
(2) Those means are—
(a) the rescue as a going concern of the company subject to the smcl administration order; and
(b) transfers falling within subsection (3).
(3) A transfer falls within this subsection if it is a transfer as a going concern—
(a) to another company, or
(b) as respects different parts of the undertaking of the company subject to the smcl administration order, to two or more different companies,
of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the smart meter communication licensee administration.
(4) The means by which transfers falling within subsection (3) may be effected include, in particular—
(a) a transfer of the undertaking of the company subject to the smcl administration order, or of a part of its undertaking, to a wholly-owned subsidiary of that company; and
(b) a transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a).
(5) The objective of a smart meter communication licensee administration may be achieved by a transfer falling within subsection (3) to the extent only that—
(a) the rescue as a going concern of the company subject to the smcl administration order is not reasonably practicable or is not reasonably practicable without such a transfer;
(b) the rescue of that company as a going concern will not achieve that objective or will not do so without such a transfer;
(c) such a transfer would produce a result for the company's creditors as a whole that is better than the result that would be produced without it; or
(d) such a transfer would, without prejudicing the interests of those creditors as a whole, produce a result for the company's members as a whole that is better than the result that would be produced without it.
(6) The Secretary of State may by regulations made by statutory instrument—
(a) specify activities carried out by a smart meter communication licensee under the relevant licences to which a smart meter communication administrator must give priority in—
(i) managing the affairs, business and property of the licensee, and
(ii) otherwise exercising and performing the powers and duties of a smart meter communication administrator; and
(b) make provision about how the smart meter communication administrator is to give priority to specified activities.
(7) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.