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Energy Update

24 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 statement addresses a contingent liability arising from issuing a letter of credit for Bulb Energy Limited under special administration.

Action Requested

A Departmental Minute is being laid before Parliament describing the contingency and providing particulars of the liability. The letter of credit, issued to guarantee certain obligations of Bulb consistent with the special administration’s statutory objective, has been approved by HM Treasury in principle.

Key Facts

  • Government Department proposes a contingent liability of £300,000 or above without specific statutory authority.
  • Bulb Energy Limited entered the Special Administration Regime on 24 November 2021.
  • A letter of credit has been issued to guarantee contract obligations consistent with the special administration’s objective under section 165 of the Energy Act 2004, as applied and modified by section 96 of the Energy Act 2011.
  • HM Treasury approved the arrangements in principle.
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