An agreement has been reached overnight to allow Octopus Energy to take over the collapsed power supplier Bulb.
The company’s 1.5 million customers and 650 employees will be transferred after the Government confirmed a deal had been met with its special administrators.
Bulb customers do not need to do anything and won’t experience any disruption as the organisations work together to deliver a “smooth, market-led exit” from administration, the UK Government said.
Business secretary Grant Shapps said the deal will mean “vital reassurance and energy security to consumers across the country at a time when they need it most”.
Bulb entered special administration in November last year. The company’s exit from the market came after the collapse of more than 20 suppliers since the start of 2021 amid the soaring price of gas.
Saturday’s announcement made no mention of the money involved in the take over but did say the Government would provide the remaining funding necessary to ensure the special administration is wound up in a way that protects customers’ supply.
A spokesperson said: “The Government can recoup these costs at a later date, ensuring that we get the best outcome for Bulb’s customers and the British taxpayer.”
After Bulb collapsed, the UK Government set up a nearly £1.7bn loan to allow the company to continue supplying energy to its customers.
The current increase in wholesale energy prices is driven by a number of factors including Russia’s invasion of Ukraine and the global recovery from the Covid pandemic.
The UK Government implemented support that means bills for an average household in Scotland will be capped at £2,500 from October 1.