Taxpayers face £2.5billion bill as failed energy supplier Bulb will remain under ‘special administration’ Government bailout this winter – despite rival Octopus Energy agreeing a deal to take on the stricken firm’s 1.5million customers
- Taxpayer could face further £2.5 billion bill over rescue of failed energy firm Bulb
- Octopus Energy this weekend agreed to take on Bulb’s 1.5 million customers
- Bulb in ‘special administration’ since last year and propped up by government
Taxpayers could be facing a further £2.5 billion bill over the rescue of failed energy firm Bulb, it was claimed last night.
Octopus Energy this weekend agreed to take on Bulb’s 1.5 million customers in a Government-approved deal.
But the collapsed supplier will continue to be propped up by the state over the winter.
Bulb had been in ‘special administration’ since its failure late last year, which has already led to billions of pounds in taxpayer losses.
Taxpayers could be facing a further £2.5 billion bill over the rescue of failed energy firm Bulb
Analysts are warning that, with the ongoing support, the bill to the taxpayer could rise even further.
Tony Jordan, senior partner at energy consultancy Auxilione, calculated that the cost could reach £2.5 billion over the next five months.
Bulb currently has no ‘hedges’ in place to protect it against further rises in wholesale energy prices, leaving it exposed to market volatility.
‘A cold winter, a nuclear threat from Russia, you name it. Anything could easily push the price of gas back up very quickly,’ Mr Jordan said.
‘And then that £2.5 billion will look very small because it could go up to four, five or six billion. That is the risk the Government needs to think about.’
Octopus Energy this weekend agreed to take on Bulb’s 1.5 million customers in a Government-approved deal. Pictured: Then-Prime Minister Boris Johnson with at the energy supplier’s headquarters in 2020
Bulb’s sale to Octopus ends a process in which the firm was effectively nationalised.
Following the deal, Business, Energy and Industrial Strategy Secretary Grant Shapps said: ‘This Government’s overriding priority is to protect consumers and today’s sale will bring vital reassurance and energy security to consumers across the country at a time when they need it most.’
Greg Jackson, founder and CEO of Octopus Energy, said his firm would serve as a ‘stable home’ to Bulb’s customers.
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