How will Bulb customers be affected by the events? As the energy giant enters administration, these are crucial questions that need to be answered.

  • This energy company was founded in 2015, and it has so far gathered 1.7 million customers. 
  • The company announced today that it has been placed in special administration 
  • It will therefore be supported by the government until a solution can be found 
  • Bulb moves into special administration after 22 energy businesses went under.










Bulb, what’s the matter?

This company sells electricity and gas at a lower price than what it would cost to purchase. This is because the Government’s price cap limits what suppliers can charge to under the current wholesale price of energy. 

The firm’s investors and lenders refused to continue supporting these losses, forcing it to shut down. 

Although the cap provides some protection to householders in times of rising wholesale prices, it also means energy companies are suffering huge losses.

Bulb has 1.7million customers in the UK and has become the biggest gas and electricity firm yet to go into administration

Bulb currently has more than 1.7 million UK customers and is the largest electricity and gas company yet to enter administration

The next step?

Industry regulator Ofgem would normally appoint a rival energy firm to take on Bulb’s 1.7million customers under a regime known as the Supplier of Last Resort. 

There is little chance that this will happen, even if it is possible in the near future, as no other business is willing to assume the enormous losses and costs involved. 

The company will be run by a team of specialists who buy and sell energy until the market is ready for them to join it.

What will this mean for customers?

Gas and electricity supply are not subject to interruption. Credit accounts of households do not have any credit. Customers will typically have been paying around £900 a year. 

Under the new regime, this figure is likely to rise to the official price cap of £1,277. This cap will be reviewed in April, and it is expected to increase by several hundred dollars.

Bulb¿s demise marks one of the biggest failures in the ongoing energy crisis ¿ coming weeks after Avro Energy went bust leaving 580,000 customers facing uncertainty (stock image)

Bulb’s demise marks one of the biggest failures in the ongoing energy crisis – coming weeks after Avro Energy went bust leaving 580,000 customers facing uncertainty (stock image)

They should now do what?

Which consumer group? Bulb advises its customers not to act and instead wait for the information. It is not worth shopping for deals at lower rates, since there is no official limit and most energy companies aren’t taking on customers.

Who is responsible for the administration costs?

It is likely that the costs will be passed to the households via a tax on all bills over the coming years.

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