This article was written earlier in November 2021, as of 22nd November, Bulb Energy has gone into administration.
In need of cash?
According to reports in the Financial Times (20/09/2021), Bulb Energy are currently looking for a cash injection into the business, or to merge with another company. This has led some people to speculate that Bulb Energy are potentially going bust.
“Like everyone in the industry, we’re monitoring wholesale prices and their impact on our business.”
Too big to fail?
Jim Watson, professor of energy policy at University College London, told iNews that the UK government would not allow Bulb (who are the UK’s sixth-largest energy supplier) to go bust.
Bulb’s 1.7 million customers would be too many for other energy providers to swallow, he claims.
Instead, it is likely that a bailout or state-backed loan is likely to help rescue the energy firm.
This is at odds however with Business Secretary Kwasi Kwarteng. In his House of Commons speech yesterday, Kwarteng said “Firstly, the government will not be bailing out failed companies. There will be no rewards for failure or mismanagement. The taxpayer should not be expected to prop-up companies who have poor business models and are not resilient to fluctuations in price.”
What happens next?
On 29th October, Sky News reported that ministers and officials believe that Bulb could collapse as early as the beginning of November. Talks with some potential buyers are currently ongoing, but other potential buyers have recently pulled out.
A Bulb spokesperson said on Friday: “Our discussions with multiple parties to secure additional funding continue to make good progress and we’re encouraged by the drop in wholesale energy prices.”
What happens if my energy supplier goes bust?
If your energy supplier does go bust, there is no need to panic. You will still receive an energy supply and Ofgem will take care of the process.
You do not need to find a new supplier either, as Ofgem will organise this for you. There is a good guide on the Ofgem website, which covers all this and more.
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