Prepayment meaning

Mergers The CMA has begun its phase 1 review and called for views on Aviva plc's anticipated takeover of Direct Line Insurance Group plc—see further, case page. NOTE—For all live mergers before the CMA, see further, UK mergers—ongoing cases tracker. Subsidy control The Subsidy Advice Unit has agreed to prepare advice for the Department for Business and Trade on its proposed Automotive Transformation Grants scheme—see further, case page. NOTE—For every matter referred to the Subsidy Advice Unit under the Subsidy Control Act 2022, see further, UK subsidy control—ongoing cases tracker. Private actions The CAT published an order dated 14 May 2025 in Utilita Energy Limited & Another v PayPoint plc & Others. The claim, brought under section 47A of the Competition Act 1998 by Utilita Energy Limited and Utilita Services Limited, alleged PayPoint abused a dominant position in supplying over the counter (OTC) payment services to Great Britain energy suppliers with prepayment meter customers. Following a confidential settlement agreed by the parties, the CAT dismissed...

In this issue: Core developments and materials Regulation and licensing of the electricity and gas markets Networks and network connections Renewable energy Capacity Market, balancing services and energy system flexibility Conventional power, waste to energy, biomass and CHP projects Nuclear energy Air emissions, efficiency and climate change International energy Daily and weekly news alerts Updated Practice Note Dates for your diary Key developments and materials Access secured to six market-leading energy law titles We are pleased to share that we have recently broadened our Lexis+ Legal Research portfolio by obtaining an exclusive licence from Globe Law and Business to publish six market‑leading energy law titles. We are currently adding links to these titles within the relevant Practical Guidance in the Energy module on Lexis+...

Real estate finance (REF) transactions REF deals fall into two categories: investment finance and development finance. The difference depends on whether the property is bought as an investment that already produces income, or acquired with the intention that it will be developed. Investment finance transactions are encountered more frequently than development finance transactions. For a general introduction to investment facilities in real estate finance, see the following Practice Notes: Introduction to real estate finance—the lending structure Real estate finance—investment facilities—key features The Loan Market Association (LMA) has issued a recommended form of facility agreement for real estate finance investment transactions, accompanied by a user guide. Both are available to LMA members—see the Single Currency Term Facility Agreement for Real Estate Finance Multi-property Investment Transactions (LMA REF Investment Facility Agreement) and the related user guide on the LMA website. Real estate finance transactions can differ markedly, and the LMA acknowledges in its user guide that producing a genuine ‘standard form’ document for...

What is prepayment finance? Prepayment finance, a form of commodities finance, describes arrangements where buyers fund commodity producers by paying ahead of delivery. This well-established model channels funding directly to buyers or traders of goods and commodities, and indirectly to producers and exporters. Under this structure, a buyer—often called the offtaker—makes an advance to the producer or exporter, with that prepayment backed by a separate loan provided to the offtaker by a lender, typically a bank or a syndicate of banks. Such structures are advantageous to: producers, as they can obtain credit that would otherwise be unavailable through the conventional banking system; and buyers, as the financing enables them to secure long-term supply agreements with producers in return for providing funds. They are especially valuable where the producer operates in jurisdictions with exchange control regulations or tax regimes that prohibit or penalise direct lending to producers by overseas financial institutions. Such regimes often permit advance payments to producers for the purchase...

CASE HUB ARCHIVED This archived case hub captures the position as at the decision of 30 May 2019 and is no longer maintained. See the timeline and commentary for further detail. Case facts Summary of Ofgem’s Chapter I investigation into two energy suppliers and a consultancy over an alleged breach of competition law through customer allocation and the sharing of sensitive information. Latest development On 30 May 2019, Ofgem issued an infringement decision finding that E (Gas and Electricity) Limited, Economy Energy, and Dyball Associates, an energy software and consultancy provider, violated Chapter I of the Competition Act 1998. The total fines imposed amounted to £870,000. Parties Economy Energy Trading Limited and its parent Economy Energy Holdings Limited (together Economy Energy), a UK-based supplier of electricity and gas. The majority of Economy Energy’s customers are on prepayment. E (Gas and Electricity) Limited and its parent E Holdings Limited (together E), a UK-based supplier of electricity and gas. The majority of...

This Agreement, dated [ • ] 20[ • ], is entered into between the following parties: Parties [ insert name of Borrower ], a company incorporated in England and Wales with registered number [ insert company number ], whose registered office is at [ insert address ] (the Borrower); and [ insert name of Lender ] of [ insert address ] (the Lender). Background (A) [ insert description of background to transaction ]. (B) The Lender has agreed to provide the Facility (as defined below) to the Borrower on the terms and conditions contained in this Agreement...

Term sheet for a bilateral facility for a borrower incorporated as a limited liability company in England and Wales with or without security/a guarantee In relation to a proposed £[ • ] term loan facility to be made available to [ insert name of borrower ] by [ insert name of lender ] (the Parties). Date [ • ] 20[ • ] This term sheet is for indicative purposes only and serves as a guide to the provisions expected to appear in the final documentation. It does not constitute an offer to provide the facility. Availability of the facility remains subject to satisfactory due diligence, approval by the credit committee, and acceptable final documentation. The terms set out in this letter are not comprehensive and, [ save for [] ], are subject to contract and are not intended to create legally binding obligations on the Parties...

This Agreement is entered into on [ insert day and month ] 20[ insert year ] Parties [ insert name of party ] [ of OR a company incorporated in [ England and Wales ] under number [ insert registered number ] with its registered office at ] [ insert address ] (the Lender); and [ insert name of party ] [ of OR a company incorporated in [ England and Wales ] under number [ insert registered number ] with its registered office at ] [ insert address ] (the Borrower). background (A) The Borrower is a wholly-owned direct or indirect Subsidiary (as defined below) of the Lender. The Lender has agreed to extend to the Borrower an unsecured term loan of £[ insert amount of loan in figures ] ([ insert amount of loan in words ] pounds sterling) on and subject to the terms and conditions of this Agreement...