A light breaks as gas prices continue to soar amid the UK energy crisis.

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A light breaks as gas prices continue to soar amid the UK energy crisis.

A light breaks as gas prices continue to soar amid the UK energy crisis.

After being driven out of the market, Bulb, the UK’s seventh largest energy supplier, has gone bankrupt. Bulb has a customer base of 1.7 million people.

The company is the largest of over 20 energy suppliers to declare bankruptcy since the beginning of September as gas prices rose, affecting over four million customers.

When a large supplier is unable to trade, the energy regulator, Ofgem, will attempt to appoint a special administrator, which is a process that safeguards customers.

“We’ve decided to support Bulb’s placement in special administration,” Ofgem announced yesterday. “It will continue to operate with no interruption in service or delivery to members,” says the company. “Please don’t worry if you’re a Bulb member; your energy supply is secure, and all credit balances are protected,” says a Bulb spokesperson. Bulb’s parent company, Simple Energy, will go bankrupt, but the company’s foreign operations in France, Spain, and the United States will continue to operate.

Bulb is the first energy company to adopt Ofgem’s special administration system, which normally entails customers being switched to a new provider.

If Bulb had a huge customer base, this approach would be lengthy and costly.

Avro Energy, which had 580,000 clients, was the largest supplier to fail before Bulb.

Bulb will be managed by an administrator until it is sold, or until its clients migrate to another provider, or until it is restructured.

Kwasi Kwarteng, the Business Secretary, can now give or loan money to Bulb as part of the scheme.

According to Downing Street, Prime Minister Boris Johnson paid a visit to Bulb’s premises in July and stated that the company was “leading the way in the renewables revolution,” with “strong” measures in place to protect Bulb’s clients.

“Unlike some of the smaller suppliers that have gone out of business,” Uswitch.com’s Justina Miltienyte stated, “Bulb operated with a good business model mixed with a competitive offering for consumers.”

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