Bulb to go into administration.

  • 22 November 2021
  • 15 replies
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Userlevel 7
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Bulb energy  to go into administration, just announced by the BBC


15 replies

Userlevel 7
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I’ve just seen :( 7th largest supplier to with 1.7 million customers. At the rate the companies will still be transferring customers in 2023 with all these going under. Such a sad time 

Userlevel 7
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...and not any old administration but Special Administration which means it will continue to trade until a buyer can be found (in other words the government will prop it up)

Oh, it worked, I finally got a reply to post to this thread.

Sad news, and if someone so close to ‘The Big Six’ can go under, you have to wonder how long before one of them falls?

Userlevel 4

Yeah.. I was wondering what this speciall administration meant.. sigh.. too bad the same couldn't happen for PP

Userlevel 7
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I can see somebody buying the company for a quid out of administration and then they dont need to transfer the customer base over and can do this over a longer period. Dont be suprised if shell dont snap it up as they seem to be going large on energy retailing being as they now practically have purchased the australian supply and retail matket. 

...and not any old administration but Special Administration which means it will continue to trade until a buyer can be found (in other words the government will prop it up)

In other words @woz you and I are going to cover the costs/losses.

I understand that Ofgem can direct a company to take on a failed company’s customers. If it does not, as in this case, then it is because it assumes to do so would cause difficulties for any company so directed, creating yet further debacle. Ofgem must have decided Bulb was too much for any of the survivors to take on.

That would be a real hospital pass if this did that in this crazy loss making market @G4RHL.

 

 Commandment 11 — Thou shalt make an even bigger loss 

 

Makes number 7 seem more appealing… 🛌

This is a shame,.I liked bulb (moved from them over to PP). Bulb are not a small supplier so none of the big 6 will touch them in my opinion. Will be interesting to see what the government do as I dont see nationalisation of the energy market being popular with a conservative government.

@Pinuk We are told what “government” will do. In parenthesis as it is what Ofgem will do, but that is the same thing. They are going to run Bulb until a buyer is found. Thus Bulb is to be nationalised. We are likely to end up with those employed by Ofgem doing a deal that creates a loss and then advising the Government its the best deal possible and Government happily accepting such advice as, after all, these are the experts!!

Userlevel 7
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The above overlaps content with this thread, read my reply there, I see little difference between the gov taking over the administration and Ofgem supporting the transition to SOLR with incentives if I’m correct (but I have no idea whether I am).

Userlevel 7
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I am slightly curious to see if BP would have a sniff around bulb energy as a takeover would give them entry into the retail markets not only in the UK but also France, spain and texas. As a direct subsidiary of BP it would enable them to cover any losses as a  tax deduction whereas PP was a stand-alone company in which they invested and as such it was harder to cover the losses. 

Failing that i think either shell or a new foreign owner new to the uk will take them over. 

@Mavis1 I am sure BP will be able to cover their losses arising from the demise of PP as a tax deduction.

Userlevel 7
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It’s official taxpayers are bailing bulb out 

“Bulb has been handed about £1,000 per customer from the UK government to enable it to continue supplying energy.”

In addition to us paying more for our own energy as well. A £63m trading loss last year and a deficit of £223m. At least some politicians are now asking questions about Ofgem.

I suppose we can get some solace from the fact that BP and Shell actually produce energy and are not just suppliers to the end user. I have not included BG as they are part of Shell. Looks like we end up with big players and only a few of them. Not desirable either. 

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