Continuity of Supply of Essential Services to Insolvent Businesses

Business Minister Jo Swinson (at least it wasn't Vince Cable!) has today (9th February) announced that the Government will be proceeding with plans to secure essential IT and utility supplies to distressed businesses being restructured or rescued out of formal insolvency.

Amendments will be made to the Insolvency Act 1986 to prevent suppliers of IT, water, gas, electricity and communications services cutting off supply or increasing their charges on account of insolvency where insolvency practitioners are working to find a viable solution to rescue the business.

All very laudable. However, there will be some safeguards for the supplier that will enable the supplier to:

  1. require a personal guarantee from the IP at any time during the insolvency process (like the beginning!)
  2. terminate the supply if payment isn't made within 28 days
  3. apply to the Court to terminate the contract (or supply) on grounds of hardship

We have never had a problem with the supply of essential services to any of our cases, yet I now may have to give a personal guarantee to achieve what I had before.

This is meant to be progress!
Back to all news
Get in touch
Thank you for your getting in touch with us, a member of our team will be in touch shortly.
Something went wrong while submitting the form, please get in touch with us using the phone number above to deal with your enquiry.
Operating nationwide throughout the UK

At Frost Group, we want to make things as easy as possible for you. That is why, if you can’t come to us, we’ll come to you. We operate face to face, nationwide meetings, wherever is most convenient for you.


Clockwise, Old Town Hall
30 Tweedy Road
Bromley, BR1 3FE


Court House,
Old Police Station South Street,
Ashby de la ZouchLE65 1BR


86-90 Paul Street

Proud members of

Authorised by

Frost Group Limited is authorised by the Financial Conduct Authority. Authorisation number 669247.