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Business Update

31 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 the issuance of a letter of credit for Bulb Energy Limited under the Special Administration Regime.

Action Requested

I have laid before Parliament a Departmental Minute describing this contingent liability and explained that it is normal practice to present such matters. The previous letter of credit expired, necessitating this new issuance.

Key Facts

  • A new letter of credit has been issued for Bulb Energy Limited.
  • This replaces the previous one provided in December with an extension announced on 02 March.
  • The contingent liability is over £300,000 and there is no specific statutory authority.
  • Bulb entered the Special Administration Regime on 24 November 2021.
  • The legal basis for a letter of credit is section 165 of the Energy Act 2004 as applied by section 96 of the Energy Act 2011.
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