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Energy bulletin: statutory licences issued by a regulator do not give rise to contractual rights and obligations

Overview

In Data Broadcasting International Limited v Office of Communications (Ofcom) [2010] EWHC 1243 (Admin) the court reiterated the protections afforded to regulators in a commercial context and made it clear that licences issued under a statutory regime will not be treated as contracts and therefore there will be no possibility of the licensee seeking damages under contract law for a breach of the licence. This case is of particular relevance to energy companies operating under statutory licensing or permit arrangements with regulators such as Ofgem.

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