The Heat Networks (Market Framework) (Great Britain) Regulations 2025
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Change 1
59C Objectives of heat network administration order
(1) The objectives of a heat network administration order are to secure the following— (a) that the supply of heating, cooling or hot water is continued at the lowest cost that it is reasonably practicable to incur; (b) insofar as consistent with sub-paragraph (a), that the company’s relevant heat network is, and continues to be maintained and developed as, an efficient and economical system; and (c) that it becomes unnecessary, by using one or more of the means referred to in paragraph (2), for the order to remain in force for those purposes. (2) The means are— (a) the rescue as a going concern of the company subject to the heat network administration order; (b) transfers falling within paragraph (3); (c) the heat network administrator making arrangements for securing that heat network consumers supplied with heating, cooling or hot water by the company’s relevant heat network have an alternative supply of heating or, as the case may be, cooling or hot water. (3) A transfer falls within this paragraph if it is a transfer as a going concern of so much of the undertaking of the company subject to the heat network administration order as is associated with the company’s relevant heat network— (a) to another company; or (b) as respects different parts of that undertaking, to two or more different companies, as it is appropriate to transfer for the purposes of achieving the objectives of the order. (4) The means by which a transfer falling within paragraph (3) may be effected include— (a) a transfer to a wholly-owned subsidiary of the company; (b) a transfer to another company of securities of a wholly-owned subsidiary to which there has been a transfer falling within sub-paragraph (a). (5) The objectives of a heat network administration order may be achieved by a transfer falling within paragraph (3) only to the extent that— (a) the rescue as a going concern of the company subject to the order is not reasonably practicable or is not reasonably practicable without such a transfer; (b) the rescue of the company as a going concern will not achieve the objectives 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 the company’s creditors as a whole, produce a result for that company’s members as a whole that is better than the result that would be produced without it. (6) In this regulation, a reference to the relevant heat network of a company subject to a heat network administration order is a reference to— (a) the relevant heat network specified in the company’s heat network authorisation; or (b) where regulation 27 applies, the relevant heat network to which the company’s heat network authorisation relates.
59C Objectives of heat network administration order
(1) The objectives of a heat network administration order are to secure the following— (a) that the supply of heating, cooling or hot water is continued at the lowest cost that it is reasonably practicable to incur; (b) insofar as consistent with sub-paragraph (a), that the company’s relevant heat network is, and continues to be maintained and developed as, an efficient and economical system; and (c) that it becomes unnecessary, by using one or more of the means referred to in paragraph (2), for the order to remain in force for those purposes. (2) The means are— (a) the rescue as a going concern of the company subject to the heat network administration order; (b) transfers falling within paragraph (3); (c) the heat network administrator making arrangements for securing that heat network consumers supplied with heating, cooling or hot water by the company’s relevant heat network have an alternative supply of heating or, as the case may be, cooling or hot water. (3) A transfer falls within this paragraph if it is a transfer as a going concern of so much of the undertaking of the company subject to the heat network administration order as is associated with the company’s relevant heat network— (a) to another company; or (b) as respects different parts of that undertaking, to two or more different companies, as it is appropriate to transfer for the purposes of achieving the objectives of the order. (4) The means by which a transfer falling within paragraph (3) may be effected include— (a) a transfer to a wholly-owned subsidiary of the company; (b) a transfer to another company of securities of a wholly-owned subsidiary to which there has been a transfer falling within sub-paragraph (a). (5) The objectives of a heat network administration order may be achieved by a transfer falling within paragraph (3) only to the extent that— (a) the rescue as a going concern of the company subject to the order is not reasonably practicable or is not reasonably practicable without such a transfer; (b) the rescue of the company as a going concern will not achieve the objectives 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 the company’s creditors as a whole, produce a result for that company’s members as a whole that is better than the result that would be produced without it. (6) In this regulation, a reference to the relevant heat network of a company subject to a heat network administration order is a reference to— (a) the relevant heat network specified in the company’s heat network authorisation; or (b) where regulation 27 applies, the relevant heat network to which the company’s heat network authorisation relates.
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