The government has proposed to protect the most essential services such as gas and electric, water and IT from being cut off by suppliers to businesses in tough financial situations.
While these businesses seek advice and rescue solutions, the government will ban these suppliers from either cutting the service completely, or charging unfair premium rates. These sorts of suppliers will be prioritised ahead of others owed money in the rescue period, and can ask for payment guarantees from the IP.
Doing this will essentially allow businesses to continue trading while they seek help, and simultaneously give suppliers peace of mind that payments will be received.
Changes are due to come into effect in October 2015
For the full story, read ‘Government to protect essential supplies for failing businesses’
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