Energy supplier Octopus Energy is to buy its smaller competitor Bulb, after the UK government approved a deal.
Bulb collapsed last year after rising gas and electricity prices, and has since been run by the government. Its 1.5 million customers will not experience “any change or disruption to their energy supplies”, the government said. The deal is expected to be completed by the end of November.
For Bulb customers credit balances on bills will be protected and direct debits automatically transferred.
Greg Jackson, Octopus Energy Group boss, said the company was determined to provide a “stable home for the future” for Bulb’s customers and staff. Bulb has 650 employees. Octopus said the move would bring “an end to taxpayer losses”, adding it was “paying the government” to take on Bulb’s customers.
London-based Bulb was the biggest of more than 30 energy companies that collapsed last November following a spike in wholesale gas prices, which was partly caused by Covid restrictions ending and has since been exacerbated by the war in Ukraine.
It was placed into “special administration”, meaning it was run by the government through the regulator Ofgem. The special administration measure is only used if Ofgem is unable to find another company to take over an energy firm’s customers.
The state bailout of Bulb had been forecast to cost the taxpayer around £2bn by next year. It was the biggest state bailout since the Royal Bank of Scotland collapse during the 2008 financial crisis.
Good new for Bulb customers … and the tax-payer … 
