141Termination of customer retail contracts

141 Termination of customer retail contracts

141 Termination of customer retail contracts

(1) The contract for the sale of energy between a failed retailer and each person who was a customer of the retailer immediately before the transfer date is terminated on the transfer date by force of this Law.

(2) Termination of a contract under this section does not affect any rights and obligations that have already accrued under the contract, but no early termination charge is payable where a contract is terminated under this section.

(3) Subsection (1) has effect even though the financially responsible retailer might not change from the failed retailer to the relevant designated RoLR until after the transfer date.

(4) Any complaint or dispute between a failed retailer and a small customer (whether the complaint or dispute arose on, before or after the transfer date) may continue to be dealt with as if the failed retailer’s authorisation has not been revoked under section 142, and—

(a) Part 4 continues to apply to the complaint or dispute; and

(b) an insolvency official of the failed retailer is also subject to and bound by Part 4 in dealing with the complaint or dispute.

(5) The insolvency official of a failed retailer or the failed retailer (as the case may be) must take steps to cancel with effect on and from the transfer date any direct debit authorisations (including any Centrepay deductions) that are in place for any customer of the failed retailer. Cancellation of a direct debit authorisation does not affect a customer’s obligation to pay for any energy consumed before the transfer date.

(6) If a customer of a failed retailer has paid amounts to the retailer in advance towards the customer’s energy bill, the insolvency official of the failed retailer or the failed retailer (as the case may be) must—

(a) apply those amounts to the payment of the customer’s account, but only insofar as that payment is for energy consumed before the transfer date; and

(b) pay any balance remaining to the customer.

(7) If a customer has paid the failed retailer in whole or in part for a service order and as at the transfer date the order has not been completed—

(a) the designated RoLR may—