Europe

Taxpayers face enormous fee as latest energy company collapses: Ofgem now a supplier

Surging energy and fuel costs push inflation to near-decade high

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The company will be placed into an untested “special administration” process to manage the fallout of what has been dubbed the biggest energy supply collapse in UK history.  Energy suppliers in the UK are facing an uncomfortable winter because of a sharp rise in wholesale gas prices this year. Bulb will now be run by the Government through the regulator Ofgem, meaning the UK taxpayer will be funding its operations.

Ofgem said: “Customers of Bulb do not need to worry.

“Bulb will continue to operate as normal.

“Customers will see no disruption to their supply and their account and tariff will continue as normal.

“Bulb staff will still be available to answer calls and queries.”

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However, Dale Vince tweeted: “Before Bulb went bust the cumulative costs of exits from the market was circa £1 billion.

“Ofgem normally shares the costs of failure among the survivors, nice.

“That looked untenable in the circumstances before Bulb went bust.

“The tab just doubled.”

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The founder of Ecotricity added that this is the “biggest energy company failure to date”.

Today he tweeted: “Nearly as big as the last 22 failures combined, 1.7m customers stranded.

“And Ofgem’s Supplier of Last Resort scheme is maxed out.

“The government have become an energy supplier, interesting.”

Speaking to The Guardian one source from the sector said: “It has been like watching a zombie movie, you know they’re walking dead but you couldn’t be sure when they’d stop moving.

“They’ve long been dicing with death but the recent events in the energy market have been a catalyst for what would have happened anyway.”

The UK Government has been forced into defacto nationalisation of portions of the energy sector.

The move has come as the Government prepares the nation for a looming energy crisis this winter.

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