I’ve been seeing the situation and reports in the papers for a few days now and have been checking back here for a statement from bulb and seen nothing I’ve even searched but nothing seems to come up.
Could I ask that you move as soon as possible rather than dragging on heels processing our warm home payments which are are a government scheme.
It’s a concern for vulnerable and disabled customers to fall through the gaps during all the ongoing Bedlam and it will be nice if some safeguarding and rapid processing was going on.
Today’s latest update was the most alarming so far.
"__ The Government is considering the nationalisation of troubled energy group Bulb as record gas prices forced it and other smaller domestic suppliers to the brink of collapse, i has learned.
While any such move would be temporary and is considered by ministers as the “nuclear option”, sources at both the Department of Business, Energy and Industrial Strategy (BEIS) and the Treasury have confirmed that nationalisation is “still on the table”.
After initially hoping other energy suppliers would have [taken on Bulb’s 1.7 million customers), the Government has been told none of the larger groups have the capacity to supply so many households at short notice, and has had to investigate other routes to keep Bulb afloat.__"
" Options include invoking Ofgem’s “special administration” powers, a move that would be a first for the energy regulator.
This would involve Bulb, which controls 5.1 per cent of the domestic gas supply market, being nationalised while Ofgem, BEIS and the Treasury work together to find a buyer of the company, new investors, or a solution that would allow its customers to move over a longer period of time to other suppliers.
A less drastic option would be for the Government to provide tens of millions of pounds in loans to Bulb, but this could also lead to a part-nationalisation with the taxpayer taking a stake in the company until Bulb pays the loan back.
A BEIS source told i that talks with energy suppliers will continue on Wednesday and that the Government was “optimistic” about reaching a deal by the end of this week."
"Ofgem’s Energy Supply Company Administration is a special administration regime for large energy supply companies. It ensures uninterrupted energy supply to customers in the event of a large energy supply company becoming insolvent.
It is a contingency measure in case Ofgem is unable to appoint a Supplier of Last Resort, which is used when a smaller energy supplier becomes insolvent.
The special administrator, unlike an ordinary administrator, has an obligation to consider consumers’ interests as well as those of creditors, which will ensure customer bills do not rise sharply.
Smaller UK energy retailers have been thrown into crisis after a surge in wholesale gas prices to record levels, leaving many some suppliers without price-rise insurance strategies to run at a loss.
An Ofgem source said: “We have never had take the special administration route before as we’ve been able to find a company to take the customers of any firm that has collapsed in the past. But, in Bulb’s case, there are 1.7 million customers that even larger suppliers will struggle to absorb. The special administration route is there if the Government cannot agree to find a solution for Bulb.”
A senior Treasury official added: “Talks with the industry are ongoing, but it is unlikely any solution will be found in the next day or so. But we are hopeful a deal can be arranged by the end of this week.”
Bulb has also been attempting to agree lending deals with its bankers, but these are believed to have hit the dead end, thereby increasing the likelihood of some form of taxpayer bailout.
As Business Secretary Kwasi Kwarteng continues negotiations with Bulb, he has said smaller energy companies that are struggling for survival will not receive a taxpayer bailout.
Four smaller firms have asked larger companies to bid to take over their supply to one million customers. These are understood to be Utility Point, People’s Energy, PfP Energy and MoneyPlus Energy, which have all ceased trading in recent weeks.
As talks with Bulb continue the Government has struck a deal with a US company to restart production of carbon dioxide (CO2) at plants in the UK after warnings of food shortages.
CF Industries stopped work at two of its fertiliser factories, which supplies most of the CO2 used in food production, due to soaring gas prices. The gas is widely used in the food industry in brewing and in packaging for meat and salads to prolong shelf life.
A spokeswoman for Ofgem said: “Ofgem monitors finances of all large and small energy suppliers – speculation about the Special Administration process (SAR) or any individual supplier’s position is unhelpful and not something we would, or have, commented on. For those customers who are with energy companies that can no longer trade, a new supplier will be appointed.”
Bulb denied it was in talks with the Government about nationalisation, adding the firm had “not asked for a bailout”.