Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 7 November 2022 on Bulb Energy: Takeovers, at what point during the takeover of Bulb Energy by Octopus Energy the process will cease to be commercially sensitive.
Answered by Graham Stuart
The sales process between Bulb and Octopus Energy has not yet been completed. Due to the commercial sensitivity around the contractual documentation between Bulb and Octopus, to which the Government is not a counterparty, the Government cannot speculate on when this will cease. The Government remains committed to providing transparency to Parliament at the appropriate time.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to update the Ofgem's Strategy and Policy Statement to enable it to regulate for Net Zero.
Answered by Graham Stuart
The Gas Act 1986 and the Electricity Act 1989 state that Ofgem’s principal objective is to protect the interests of existing and future consumers, including their interests in the reduction of emissions of targeted greenhouse gases. These Acts define emissions and targeted greenhouse emissions as being the same as in Part 1 of the Climate Change Act 2008.
Therefore, Ofgem already has a decarbonisation objective in law, which will be supported by the Strategy and Policy Statement setting out the Government’s priorities as a guide for the regulator. The Government aims to publish a consultation on the Strategy and Policy Statement soon.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 8 November 2022 to Question 78625, how much funding was claimed by Bulb Energy under the draw down funding agreement with BEIS before Bulb Energy was taken over by Octopus Energy.
Answered by Graham Stuart
As per Teneo’s progress report on 21st June 2022, a total drawdown of £901m has been used to meet the costs of the Energy Administrators under the funding agreement.
Further Information can be found at: https://find-and-update.company-information.service.gov.uk/company/08469555.
Teneo, as part of their statutory obligations are required to provide progress reports on a six-monthly basis.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 7 November 2022 to Question 77243 on Bulb Energy: Insolvency, if he will make an assessment of the potential impact on customer bills of use of the shortfall recovery mechanism in relation to this case.
Answered by Graham Stuart
The Government is committed to maximising value for money for taxpayers and has the option to recover costs through the shortfall recovery mechanism which would see a levy charged on industry. The decision of how this process will be carried out lies with the Secretary of State.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 7 November 2022 to Question 77243 on Bulb Energy: Insolvency, whether there is a cap on the cost of the shortfall recovery mechanism that can be charged via a levy on energy suppliers.
Answered by Graham Stuart
The Special Administrators of Bulb are required by law to keep costs as low as possible and we continue to engage closely with them to ensure maximum value for money for taxpayers.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the total amount of customers' credit balances held by Bulb Energy.
Answered by Graham Stuart
The amount of customers’ credit balances held at Bulb Energy is commercially sensitive and will not be published. Bulb customers’ credit balances are protected.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will provide details of the profit share agreement that will apply until Octopus Energy has repaid the public funding from Government for the cost of the energy bought for Bulb customers.
Answered by Graham Stuart
A profit-share agreement will be put in place for the ringfenced business until agreed funding is repaid by Octopus. Under this structure, payments to shareholders or the wider Octopus group from the ringfenced entity would be restricted until the repayable funding to Government is complete.
The details of the profit share agreement are commercially sensitive and will not be published.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether Octopus Energy is required to repay the costs of the energy that the Government will buy for Bulb customers in winter 2022.
Answered by Graham Stuart
The Government will provide financial support to the new entity for the procurement of energy for Bulb customers over the course of Winter 2022. This financial support will be repaid by the new entity in accordance with an agreed repayment schedule.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the impact of the Smart Meter Data Access and Privacy Framework 2012 on proposals to collect data from electricity meters as part of the Energy Price Guarantee Scheme.
Answered by Graham Stuart
I refer the Hon. Member to the answer I gave the Hon. Member for Newcastle upon Tyne Central on 7 November 2022 to Question 77419.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the Government will be liable for any redundancy payments to employees of Bulb Energy when the sale of Bulb Energy to Octopus Energy is completed.
Answered by Graham Stuart
Part of the sale process will involve the transfer of relevant assets to Octopus energy. This will also include Bulb’s employees, reducing any uncertainty they may have about the future of their jobs. The management and any employee matters will be undertaken by the new owners. The Government remains committed in ensuring a smooth transition of the business providing value for all.