Octopus Energy asks government for £1bn to buy Bulb
Posted: Mon Aug 01, 2022 12:10 am
Looks like Octopus is the only bidder for Bulb and since Bulb went into special administration it stopped doing any future hedging. 
So on top of £1 billion already lost and not yet passed on to bill payers, Octopus wants another £1bn to prop up the unhedged position to keep it as a going concern.
https://www.bbc.co.uk/news/business-623 ... 8_12oHMA24
Since Ofgem took over the running of Bulb, it has not been hedging its purchases of wholesale energy which sources said has led to higher costs.
Bulb, with 1.6 million customers, was the biggest firm to go bust but Ofgem estimates that the cost of all the other energy companies which collapsed in 2021 could reach £2.7bn - or £94 per customer. It includes the cost of transferring customers from failed energy providers to new firms.
The £2.7bn figure is in addition to the billions of pounds earmarked for Bulb which, according to the National Audit Office, has already seen the government spend £900m to keep the company running.
Octopus was the only bidder for Bulb, which filed for administration last year, and if a deal is agreed, it would significantly boost Octopus's 3.1 million customer base.
So on top of £1 billion already lost and not yet passed on to bill payers, Octopus wants another £1bn to prop up the unhedged position to keep it as a going concern.
https://www.bbc.co.uk/news/business-623 ... 8_12oHMA24
Since Ofgem took over the running of Bulb, it has not been hedging its purchases of wholesale energy which sources said has led to higher costs.
Bulb, with 1.6 million customers, was the biggest firm to go bust but Ofgem estimates that the cost of all the other energy companies which collapsed in 2021 could reach £2.7bn - or £94 per customer. It includes the cost of transferring customers from failed energy providers to new firms.
The £2.7bn figure is in addition to the billions of pounds earmarked for Bulb which, according to the National Audit Office, has already seen the government spend £900m to keep the company running.
Octopus was the only bidder for Bulb, which filed for administration last year, and if a deal is agreed, it would significantly boost Octopus's 3.1 million customer base.