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Bulb becomes latest energy provider to collapse as Govt confirms supply will continue
24 November 2021, 20:54 | Updated: 24 November 2021, 21:25
Bulb, the seventh-largest energy provider in the UK, has formally entered into administration, the Government has confirmed.
But the business department has said it will keep supplying customers under a Special Administration Regime.
The company, which has 1.7m users, first announced its insolvency on 22 November.
But its customers have been assured they will not see any changes or disruption to their supplies, with Bulb continuing to trade now energy administrators have been appointed.
A statement on the Department for Business, Energy and Industrial Strategy said: "Bulb customers, including those with prepayment meters, do not need to do anything and customers' existing credit balances are protected.
"Customers will not see any immediate increase to their energy bills while the company is under the administrators, and do not need to look for a new energy supplier, although they are free to do so if they wish. "
Energy Minister Greg Hands said: "Our overriding priority is to protect consumers and the appointment of administrators will ensure the supply of energy remains normal to Bulb customers across the country, providing vital reassurance while an enduring solution is agreed.
"The administrators will now take temporary charge of operating Bulb, and that includes ensuring if a new owner cannot be found customers are safely moved to another supplier."
The collapse follows soaring gas prices, which the Government has blamed partly on the demand for energy as countries come out of Covid lockdowns.
Special Administration Regimes are used to protect services that would be disrupted if companies go insolvent, and is used for essentials like water, sewerage, rail transport and education.
Companies are only meant to be under such a regime for a short period of time.
The BEIS reiterated that the energy price cap will stay in place through winter as consumers worry about how much their bills will be affected by gas prices.