Octopus Energy to take over collapsed supplier Bulb

Energy supplier Octopus Energy is to bargain its smaller rival Bulb, aft the UK authorities approved a deal.

Bulb collapsed past twelvemonth aft rising state and energy prices, and has since been tally by the government.

Its 1.5 cardinal customers volition not acquisition "any alteration oregon disruption to their vigor supplies", the authorities said.

The woody is expected to beryllium completed by adjacent month.

Business Secretary Grant Shapps said the determination volition bring "vital reassurance and vigor information to consumers crossed the state astatine a clip erstwhile they request it most".

Octopus had antecedently requested £1bn successful nationalist funding for the deal, but the authorities announcement made nary notation of the wealth progressive successful the deal.

The connection said that "due to precocious marketplace volatility it is impossible" to forecast the existent outgo of Bulb.

Octopus said the determination would bring "an extremity to payer losses", adding it was "paying the government" to instrumentality connected Bulb's customers.

London-based Bulb was the biggest of much than 30 vigor companies that collapsed past November pursuing a spike successful wholesale state prices, which was partially caused by Covid restrictions ending and has since been exacerbated by the warfare successful Ukraine.

It was placed into "special administration", meaning it was tally by the authorities done the regulator Ofgem. The peculiar medication measurement is lone utilized if Ofgem is incapable to find different institution to instrumentality implicit an vigor firm's customers.

The authorities bailout of Bulb had been forecast to outgo the payer astir £2bn by adjacent year. It was the biggest authorities bailout since the Royal Bank of Scotland illness during the 2008 fiscal crisis.

Mr Shapps, who became concern caput this week by Rishi Sunak, said the determination highlighted the government's "overriding priority" to support customers. He added helium would bash everything helium could to "ensure our vigor strategy provides unafraid and affordable vigor for all".

Octopus volition proceed to usage Bulb's exertion and branding "for a transitionary period", the government's connection said.

The company, which was founded successful the UK successful 2015, said that earlier the Bulb acquisition it served 3.4 cardinal customers.