Bulb, Britain's seventh biggest energy supplier, has formally entered into administration - becoming the biggest victim so far of the crisis in the industry.It comes after the company, which launched in 2015 and has 1.7 million customers, said earlier this week that it was set to enter a"special administration" underwritten by taxpayers.
That process is being adopted because Bulb is regarded as too big to be handled in the same way as the more than 20 smaller rivals that have already succumbed since the start of September as surging wholesale gas prices put their finances under strain.Why the energy price cap is 'failing' the UK In those cases, regulator Ofgem ensured continuity of supply by choosing a larger firm to take on customers.But the special administration for Bulb would see it propped up by guaranteed funding from the Treasury, with no interruption of service or supply to customers, while administrators seek a restructuring deal, sale or transfer of its customer base.
It will mean hundreds of millions of pounds of taxpayers' money being used to fund the company's obligations in the wholesale energy markets to ensure that it can continue operating.
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Source: The Guardian - 🏆 84. / 53 Read more »