Bulb has loaned £1,000 to each of its customers as the UK approves a massive 1.7 billion pound bailout for the struggling company.


Bulb has loaned £1,000 to each of its customers as the UK approves a massive 1.7 billion pound bailout for the struggling company.

The UK Government has given BULB an “existential” lifeline so that its 1.7 million customers are not left in the dark.

Bulb, which has a customer base of more than 1.5 million, was placed under special administration on Wednesday to avoid a disaster for its customers.

A £1.69 billion government loan is keeping the lights on until a buyer can be found or customers switch suppliers.

The money will be used to support administrator Teneo’s services.

Bulb would not have survived past the middle of December if not for this “safety net,” according to court documents.

Bulb will be run normally for the time being due to its size, which means it can continue to trade.

While Ofgem ordered customers of other failing energy providers to be transferred to new providers immediately, this would be a difficult task in the case of Bulb.

Because of its size, Ofgem couldn’t afford to let it fail.

If left unresolved, Justice Adam Johnson of the High Court of Justice in London stated that the firm’s uncertainty would “undoubtedly have an impact on customers, employees, and suppliers.”

He went on to say that the administration was set up “to keep the energy supply company afloat, with the goal of saving it if possible.”

Mr Johnson suggested that appointing a supplier of last resort as an alternative: “That is thought to be impractical here, given the size and importance of Bulb as a supplier.”

Teneo estimates that keeping Bulb operational until the end of April 2022 will cost around £2.1 billion.

However, by April, the energy price cap may have risen significantly, resulting in increased revenue for the company.

According to court documents, Business Secretary Kwasi Kwarteng has the ability to free up additional funds for the company if necessary.

“We do not want this company to be in this temporary state for longer than is absolutely necessary,” Mr Kwarteng told the House of Commons earlier on Wednesday.

The special administration regime, he said, was put in place as a “ultimate safety net to protect consumers and ensure continued supply.”

Bulb’s demise, however, is indicative of a larger issue.

A spike in gas prices has caused 22 energy suppliers to fail since the beginning of September.

Businesses were forced to sell energy for less than the cost of production.

“Brinkwire News in Condensed Form.”


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