| answer text |
<p>The support was provided to British Steel Limited in the form of a bridge facility.
Under the terms of the commercial arrangement, the Government purchased the necessary
allowances on behalf of British Steel Limited in the week leading up to 30 April and
then surrendered them, via British Steel Limited's Operator Holding Account, to the
EU Surrender Account. This occurred before the 30th April compliance deadline to surrender
allowances for the 2018 reporting year, thus enabling British Steel Limited to meet
its environmental obligations and avoid any penalties that would otherwise have resulted
from non-compliance. In return, under a deed of forfeiture, the company’s 2019 allowances
will be assigned to the Government once issued, and the proceeds from selling these
is expected to cover the costs of purchasing the allowances.</p><p> </p><p>The terms
of the commercial agreement between the Government and British Steel are set out in
letters from the Permanent Secretary of the Department for Business, Energy and Industrial
Strategy to the Chair of the Public Accounts Committee and the Comptroller & Auditor
General, copies of which have been placed in the Libraries of both Houses.</p>
|
|
