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PRACTICE NOTES
Note that additional commentary on the issues discussed in this Practice Note in the context of the regulation, consenting and incentivisation of the net zero energy transition is available in the following textbook that we have published: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. What is the ‘Supplier of Last Resort’ (SoLR) regime? When the Office of Gas and Electricity Markets (Ofgem) revokes a supply licence (usually because of insolvency), it can appoint a ‘supplier of last resort’ (SoLR) on a case-by-case basis to take over the supply of gas and/or electricity to the insolvent supplier’s customers. The aim is to protect the customers of the failed supplier by ensuring seamless continuity of supply and service. The regulatory regime for this is primarily provided for in the Standard Conditions of the supply licences held by Great Britain’s (GB’s) electricity suppliers and gas suppliers. For more information on GB’s energy licensing regime more generally, see Practice Notes: An Introduction to Electricity Licensing in Great Britain and The GB Onshore Gas Market
PRACTICE NOTES
STOP PRESS: As of 24 February 2025, the main provisions of the Procurement Act 2023 (PA 2023) are in force. Procurements begun on or after this date must be carried out under PA 2023, whereas those begun under the previous legislation (the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011) must continue to be procured and managed under that legislation. See Practice Note: Introduction to public contracts procurement. This content relates to the Procurement Act 2023 regime This practical guidance is about public procurement under the Procurement Act 2023 (PA 2023). For practical guidance relating to the previous legislation, see Practice Notes: Eligibility and selection in public procurement—exclusion criteria and Eligibility and selection in public procurement—selection criteria. This Practice Note covers the selection and exclusion regime under PA 2023, in particular: • Setting conditions of participation • Restrictions on conditions of participation • Conditions of participation—associated suppliers and sub-contracting • Reducing
GLOSSARY
A supplier’s lien is a right for a supplier of goods or services to retain possession of a customer’s property until payment of sums due. In practice, it operates as a form of security: the supplier is not obliged to release the goods (or documents relating to them) until outstanding invoices are settled.In England and Wales, Northern Ireland and Ireland, a supplier’s lien usually arises either under an express contractual clause (often drafted as a “particular” or “general” lien) or under common law principles of particular lien, where the supplier has improved or worked on goods. In Scotland, similar rights exist under possessory lien and retention, generally requiring continuous lawful possession.A supplier’s lien is a possessory remedy only: it does not normally confer a power of sale, which must be expressly agreed or arise under specific statutory regimes. Loss of possession typically extinguishes the lien.The term is descriptive rather than a single codified concept, and its scope and enforceability depend on the underlying contract, applicable common law or case law, and any relevant statutory provisions on sale of goods, insolvency, or security rights in the particular UK or Irish jurisdiction.
GLOSSARY
The Value Added Tax Act 1994, s.5(2)(a) provides that supply "includes all forms of supply".
GLOSSARY
[means total annual Scope 1, 2 and 3 Greenhouse Gas Emissions associated with the purchase of raw materials and services by [insert organisation name] in order to deliver its service[s][[ and/or] product[s]]. OR means total annual Greenhouse Gas Emissions associated with the raw materials and services purchased by the Supplier in order to deliver the Supplied Products.]
PRECEDENTS
This Precedent is a Supply Chain Emissions Scorecard for use in commercial negotiations, to position sustainability performance as a collaborative effort between the parties, increase the transparency of a supplier’s climate action through a robust reporting framework and give
PRECEDENTS
The Schedule 1 Definitions 1.1 In this Schedule: Adequate Procedures • shall be construed in accordance with BA 2010 and guidance published under it; Associated Person • means all or any of the following: (a) the officers, employees, agents, subcontractors, subsidiaries, and persons Associated With a party (Associates); and (b) persons Associated With any of the Associates, in each case involved in performing services for or on behalf of that party, the Services, and/or this Agreement; and Associated With • when used in: (a) paragraph 2 and in relation to bribery matters, shall be construed in accordance with BA 2010 and guidance published under it; (b) paragraph 4 and in relation to tax evasion facilitation, shall be construed in accordance with Part 3 of CFA 2017 and guidance published under it; (c) paragraph 5 and in relation to fraud, shall be construed in accordance with Part 5 of ECCTA 2023 and guidance published under it; BA 2010 • means the Bribery Act 2010; Bribery Laws • means BA 2010[ and associated guidance published by the Secretary of State for Justice under BA 2010] [ and all other applicable United Kingdom laws, legislation, statutory instruments, and regulations in relation to bribery and corruption] [ and any similar laws in any other relevant jurisdiction[ including [specify]] ]; CFA 2017
PRECEDENTS
The Schedule 1 Definitions 1.1 In this Schedule: Adequate Procedures • shall be construed in accordance with BA 2010 and guidance published under it; Associated With • when used in: (a) paragraph 2 and in relation to bribery matters, shall be construed in accordance with BA 2010 and guidance published under it; (b) paragraph 4 and in relation to tax evasion facilitation, shall be construed in accordance with Part 3 of CFA 2017 and guidance published under it; (c) paragraph 5 and in relation to fraud, shall be construed in accordance with Part 5 of ECCTA 2023 and guidance published under it; BA 2010 • means the Bribery Act 2010; Bribery Laws • means BA 2010[ and associated guidance published by the Secretary of State for Justice under BA 2010] [ and all other applicable United Kingdom laws, legislation, statutory instruments, and regulations in relation to bribery and corruption] [ and any similar laws in any other relevant jurisdiction[ including [specify]] ]; CFA 2017 • means the Criminal Finances Act 2017; Corporate Failure to Prevent Fraud Offence • means an offence under section 199 of ECCTA 2023[ and any other applicable United Kingdom laws, legislation, statutory instruments, and regulations in relation to failure to prevent fraud] [ and any similar or equivalent laws in
PRECEDENTS
The Schedule 1 Definitions 1.1 In this Schedule: Adequate Procedures • shall be construed in accordance with BA 2010 and guidance published under it; Associated Person • means all or any of the following: (a) the officers, employees, agents, subcontractors, subsidiaries and persons Associated With a party (Associates); and (b) persons Associated With any of the Associates, in each case involved in performing services for or on behalf of that party, the Services and/or this Agreement; Associated With • when used in: (a) paragraph 2 and in relation to bribery matters, shall be construed in accordance with BA 2010 and guidance published under it; (b) paragraph 4 and in relation to tax evasion facilitation, shall be construed in accordance with Part 3 of CFA 2017 and guidance published under it; (c) paragraph 5 and in relation to fraud, shall be construed in accordance with Part 5 of ECCTA 2023 and guidance published under it; BA 2010 • means the Bribery Act 2010; CFA 2017 • means the Criminal Finances Act 2017; Corporate
PRACTICE NOTES
STOP PRESS: From 1 October 2026, section 48 of the Border Security, Asylum and Immigration Act 2025 (inserting sections 14A and 15A of the Immigration, Asylum and Nationality Act 2006) extends right to work civil penalty liability in certain contractual arrangements, including where a supplier which, having contracted to provide services to a customer, engages a subcontractor to perform all or part of those services. Although the subcontractor remains responsible for carrying out prescribed right to work checks on individuals it employs or engages to perform the subcontracted services, the supplier may be treated as 'employing' any individual who personally performs the services and so may also be held liable for illegal working unless it satisfies the prescribed requirements for establishing a statutory excuse. The extended liability requirements apply to relevant contractual arrangements entered into on or after 1 October 2026. See News Analysis: Extended scope of the right to work regime: how will it work in practice? and LNB News 14/09/2026 18 for further information. This Practice Note will be updated shortly to reflect the changes. This
PRACTICE NOTES
We have produced a collection which is a comprehensive, interactive resource to help support lawyers who are contributing to building resilient supply chains within a business. The collection includes information in relation to key supply chain risk management considerations, tools for
PRECEDENTS
This Precedent Supply chain risk assessment and register is intended for in-house lawyers and risk professionals. It can be used to record risks to your supply chain, the severity of each risk and the actions you have taken or will take to mitigate each risk. It includes a tab showing worked examples, for information and illustration—this can be deleted. This register is provided in Excel and cannot be downloaded into Word. Please click for the Precedent risk assessment and register. Whatever the nature of your organisation’s business, it will inevitably have multiple types of suppliers, eg ranging from catering suppliers