Octopus Energy to acquire Bulb

Bulb became the first energy supplier to be placed into special administration by the government in November last year – a process designed to protect the customers of a large that has become insolvent. It was overseen by the government and run by restructuring business Teneo.  

The state bailout of the business had been forecast to cost the taxpayer around £2bn by next year and was the biggest state bailout since the Royal Bank of Scotland collapse back in 2008.  

The sale will be completed following a statutory process called an Energy Transfer Scheme – which will transfer the relevant assets of Bulb into a new separate entity designed to protect consumers during the transfer process.

Subject to approval by the business secretary, it will take effect at a time ordered by the High Court.  

The government has said it will work closely with Ofgem and Bulb’s special administrators to ensure the special administration and transfer of customers “achieves the best outcome practicable” for Bulb customers, taxpayers and the industry.  

Grant Shapps, secretary of state for business, energy and industrial strategy (BEIS), said: “This government’s overriding priority is to protect consumers and last night’s sale will bring vital reassurance and energy security to consumers across the country at a time when they need it most. 

“This is a fresh start and means Bulb’s 1.5 million customers can rest easy, knowing they have a new energy home in Octopus. 

“Moving forward, I intend to do everything in my power to ensure our energy system provides secure and affordable energy for all.”  

Octopus will continue to use Bulb’s technology and brand for a transitionary period so there’s a smooth transition. 

Octopus Energy founder and chief executive Greg Jackson said: “We take our responsibilities very seriously. We will work unbelievably hard to deliver value for taxpayers and to look after Bulb’s staff and customers. 

“We started off as rivals but shared the same mission – driving a greener, cheaper energy system with people at the heart. We know how important this is to Bulb’s loyal customers and dedicated staff, and are determined that Octopus can provide them with a stable home for the future.”  

Teneo senior managing director and special administrator to Bulb Matthew Cowlishaw added: “When the energy administrators were appointed in November 2021, our primary objectives were to enable Bulb to trade as usual while minimising the cost to the taxpayer.  

“Following a thorough and extensive process over the course of almost a year, we examined all options and in conjunction with BEIS came to the conclusion that this transaction would provide the most value to the taxpayer. 

“We are pleased that we have achieved the objectives of the special administration, especially against the backdrop of wider energy market disruption, and that the transition of employees and customers will provide certainty for both going forward.”  

The government has said it will provide the remaining funding necessary to ensure the special administration is wound up in a way that protects customers’ supply – recouping these costs at a later date.