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Departmental Contingent Liability Notification; Energy Supply Company Special Administration Regime

28 June 2022

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

At a Glance

Issue Summary

This statement outlines contingent liabilities arising from letters of credit issued to Bulb Energy Limited's Energy Administrators under the Special Administration Regime.

Action Requested

The Department for Business, Energy and Industrial Strategy is presenting Parliament with a minute detailing the contingent liabilities associated with these letters of credit. The notification period allows for proper scrutiny before any new letters are issued.

Key Facts

  • Bulb entered the Energy Supply Company Special Administration Regime on 24 November 2021.
  • Letters of credit replace previous ones provided, announced within past Written Ministerial Statements.
  • My Department has agreed to provide a facility with letters of credit issued by approval to guarantee contract obligations consistent with the special administration’s statutory objective.
  • Legal basis for a letter of credit is section 165 of the Energy Act 2004, as applied and modified by section 96 of the Energy Act 2011.
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