Due to recent worldwide events, on top of the existing energy crisis, Parliament has passed the (fictional) Energy: Cost of Living Act 2022. In part, it allows the Secretary of State for Energy "to issue binding instructions to companies providing gas and electricity on a commercial basis". These instructions must have the purpose of "ensuring affordable utilities for consumers". The Act also instructs the government to build 10 new recycling power plants, in order to reduce reliance on importing energy from abroad. These must be built and run by UK companies. Max is the head of Green Energy - a company committed to providing carbon neutral gas and electricity. He is concerned about the possibility of the current energy price cap being lowered, because green energy is expensive to provide, and being forced to lower their costs could affect the viability of the business. He would at least have to consider scaling back operations. He writes to the Department of Energy to enquire about any such plans. A civil servant at the Department replies, in writing, that "no such cap will be lowered unless it is absolutely essential to do so, and in that case, it would seem sensible to seek the views and comments of energy companies first before taking such action". Max is reassured by this, and continues to expand his company, hiring more and more employees. 6 months later, the country is hit by the worst winter in decades. The Secretary of State announces, with immediate effect, that energy companies must cap their prices at a lower level until further notice. He explains that this is because the weather conditions are dangerous for people already struggling with the costs of hearing their homes, and there is no time for delay. Max cannot take the costs, is forced to put his company into administration. Hydro-Energy - a water company - are surprised to receive a direct instruction from the Secretary of State to lower their price cap. Neptunia - the director of the company - reads the 2022 Act closely, and is convinced there must be some sort of mistake. She asks for a meeting to discuss the matter, where she also intends to explain that this cap would mean she has to make 700,000 employees redundant. The Secretary of State replies, refusing the meeting, and stating that the cap is essential to bringing the cost of living down for consumers. The government decides to open a bidding process to build the 10 new power plants required by law. The Secretary of State has the final decision. Only two companies from the UK apply. The bid from Nuke-nited Kingdom Energy includes what is generally regarded as the most advanced nuclear technology. However, the Secretary of State awards the contract to GB-Nuclear. The Secretary of State's husband owns a 25% stake in this company. Nick - the CEO of Nuke-nited Kingdom Energy - is furious. Advise Max, Neptunia, and Nick on the possibility of making successful claims under judicial review.

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Maxs Situation Maxs concerns about the potential impact of the energy price cap on his green energy company are valid While he was initially reassured ... View the full answer