1.In its letter dated 8 July 2020, the Committee requested a memorandum in relation to the Smart Meter Communication Licensee Administration (England and Wales) Rules 2020 on the following point:
In relation to Rule 194, clarify which enabling power is relied on to sub-delegate to the Secretary of State the powers to confer a discretion on the court and to create criminal offences.
2.The enabling powers for the rules are provided by section 411 of the Insolvency Act 1986 and section 159(3) of the Energy Act 2004 as applied by section 4 of the Smart Meters Act 2018. Schedule 8 to the Insolvency Act 1986 specifies provisions that may be included in rules made under section 411 of the Act.
3.The specific provision relied on in relation to Rule 194(2)(a) and (b) is paragraph 27 of Schedule 8 to the Insolvency Act 1986, combined with paragraphs 28 and 30 of that Schedule. These paragraphs read as follows:
27 Provision conferring power on the Secretary of State or the Treasury to make regulations with respect to so much of any matter that may be provided for in the rules as relates to the carrying out of the functions of the liquidator, administrator or administrative receiver of a company.
28 Provision conferring a discretion on the court.
30 Provision making non-compliance with any of the rules a criminal offence.
4.Paragraph 27 enables the rules to confer power on the Secretary of State to make regulations with respect to any matter “that may be provided for in the rules”. Paragraphs 28 and 30 are amongst the matters that may be provided for in the rules.
Department for Business, Energy and Industrial Strategy
10 July 2020
Published: 24 July 2020