Energy provider Bulb reportedly on verge of collapse

First broke by Sky News, ministers, officials and the industry regulator Ofgem believe the firm could collapse as soon as this week. Sources in the industry said, last Friday (29 October), that talks were ongoing with a small number of potential buyers, although others had pulled out.

The sources also said that, while a solvent rescue remains a possibility, it was highly unlikely the provider could survive through November without new funding. Sources speaking to The Guardian, meanwhile, have said the cost of recusing Bulb - which is understood to be carrying between £600m and £1bn of debt - could be too steep for most companies to shoulder without government help.

Typically when an energy provider exits the market - as was the case for the 16 suppliers to have gone bust over the past couple of months - customers have been allocated to another provider through Ofgem’s Supplier of Last Resort scheme.

However, one source told The Guardian that, given the size of Bulb, it would probably require the regulator to use an administrator to keep the company going over winter before prices normalise and potential buyers come forward to purchase the supplier.

Some businesses that have reportedly shown an interest include Ovo Energy, Octopus Energy and Shell Energy - with British Gas’ parent company Centrica also understood to be interested in the firm.

On Friday, a Bulb spokesperson told Sky News: “Our discussions with multiple parties to secure additional funding continue to make good progress and we’re encouraged by the drop in wholesale energy prices.

“We expect the government to monitor wholesale prices and their effect on the whole industry, but ministers and Ofgem have been clear we must emerge from the energy crisis with a competitive and innovative market, rather than a return to the oligopoly of the past.”