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Departmental Contingent Liability Notification; Energy Supply Company Special Administration Regime

17 May 2022

Proposing MP
Chelsea and Fulham
Type
Written Ministerial Statement
Department
Department for Business, Energy and Industrial Strategy

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 am laying before Parliament a Departmental Minute describing this contingent liability, which replaces previous letters of credit and provides a facility to the Energy Administrators. The usual notification timelines were not followed due to ongoing negotiations and reduced Parliamentary sitting period.

Key Facts

  • A letter of credit is being issued for Bulb Energy Limited under the Special Administration Regime.
  • This replaces previous letters of credit provided in December, February, and March.
  • HM Treasury has approved these arrangements in principle.
  • The legal basis is section 165 of the Energy Act 2004, as applied and modified by section 96 of the Energy Act 2011.
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