Bulb Energy bailout costs reached £6.5bn

It comes as part of its economic and fiscal outlook report - which set out its economic predictions for the coming years and was published alongside chancellor Jeremy Hunt’s autumn statement.  

These showed that £4.6bn will be spent handling Bulb in the 2022-23 financial year. Previously the OBR said the rescue would £2.2bn over the course of two years.  

In November last year, the firm was placed into special administration – becoming the first energy company to use this process. This saw the government fund its continued operation, with an initial £1.69bn support package provided.  

Towards the end of last month Octopus Energy announced it would be acquiring the company, paying the government to take on the firm’s 1.5 million customers. The deal aims to “protect consumers and taxpayers and “provide a stable new home for Bulb’s customers and 650 employees”.  

However, this week the sale was delayed by a High Court judge after concerns were raised by rival businesses, with British Gas and Scottish Power arguing they have not been given enough time to consider the deal.

 
As a result, High Court Judge Mr Justice Zacaroli ordered for the transfer date to be delayed, adjourning ordering the start of the scheme – with a hearing now expected around the end of the month.