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Business update

02 March 2022

Proposing MP
Greg Hands Con
Chelsea and Fulham
Type
Written Ministerial Statement
Department
Department for Business, Energy and Industrial Strategy
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At a Glance

Issue Summary

The Minister is describing a contingent liability arising from issuing a letter of credit for Bulb Energy Limited within the Special Administration Regime.

Action Requested

The Department for Business, Energy and Industrial Strategy is providing a facility with a new letter of credit to guarantee certain obligations of Bulb Energy Limited, replacing an expired one issued in December. HM Treasury has approved these arrangements in principle.

Key Facts

  • The contingent liability arises from issuing a letter of credit for Bulb Energy Limited.
  • A previous letter of credit was announced on January 6 and expired recently.
  • The new letter of credit is provided to guarantee contract obligations consistent with the special administration’s statutory objective under section 165 of the Energy Act 2004 as applied by section 96 of the Energy Act 2011.
  • Bulb entered the Special Administration Regime on November 24, 2021.
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