House of Commons · Written Ministerial Statement
Energy Update
27 April 2022 · Department for Business, Energy and Industrial Strategy
Proposed by Greg Hands Con Chelsea and Fulham
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- Greg Hands is laying a Departmental Minute before Parliament regarding contingent liabilities from letters of credit issued for Bulb Energy Limited.
- The Minister apologises for the delay in notification due to late negotiations and the Parliamentary recess.
- The arrangements have been approved in principle by HM Treasury.
Issue summary
Greg Hands is laying a Departmental Minute before Parliament regarding contingent liabilities arising from letters of credit issued for Bulb Energy Limited's special administration regime.
Action requested
The Minister regrets not following usual notification timelines due to late negotiations and Parliamentary recess but has now laid the minute before Parliament. The arrangements have been approved in principle by HM Treasury, and he will update the House if any letters of credit are drawn against.
Key facts
- Letters of credit replace previous ones issued on 06 January.
- The contingent liability is £300,000 or above with no specific statutory authority.
- Bulb entered Energy Supply Company Special Administration Regime on 24 November 2021.
- Legal basis for letters of credit: section 165 of the Energy Act 2004, modified by section 96 of the Energy Act 2011.