Bulb put into special administration as energy supplier crisis deepens

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The bulb has been placed in special administration, as the crisis at Britain’s energy suppliers deepened on Monday.

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The company is the biggest supplier so far this year amid rising wholesale energy prices. Bulb will continue to supply its 1.7 million customers while special administrators work on longer-term plans, which may include rescue, sale or transfer of customers to other suppliers.

The credit balance of the customers will be protected, Bulb said.

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The bulb’s collapse came after talks between the government, energy regulator Offgame and potential buyers failed to reach a deal. This takes the total number of customers whose energy suppliers have fallen to about 3.7 million.

A spokesperson for Bulb said: “We have decided to support placing Bulb in special administration, which means it will continue to operate with no interruptions in service or supply to members.

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“If you are a Bulb member, please do not worry as your energy supply is protected and all credit balances are protected.”

The bulb’s parent company, Simple Energy, will also enter administration. Bulb’s international businesses in France, Spain and the US will continue to do business.

Bulb will be the first company to test Offgame’s special administration system. Customers from smaller suppliers who have gone out of business have been replaced by rival companies. Prior to Monday, Avro Energy was the largest to collapse, with 580,000 customers.

The bulb is deemed too large for the “supplier of last resort” process, so a special administrator will be appointed to run the company until a solution is found.

Asked about the bulb’s difficulties, Prime Minister Boris Johnson’s official spokesman said Offgame was “carefully” monitoring the impact of higher energy prices.

“We have put in place strengths and robust processes to ensure that there is no disruption to the energy supply to customers, and costs are reduced if a supplier exits the market,” he said.

“As the public would expect, we have looked at the system, given some of the challenges and speculation that has been reported about the impact it will have on even larger suppliers.”

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Credit: www.independent.co.uk /

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