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Saturday, December 4, 2021

Bulb Energy collapses into administration – what it means for the supplier’s customers in Gedling borough

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Energy supplier Bulb has gone bust and placed into special administration – but will continue to supply their customers in Gedling borough as normal.

The company’s demise is the latest in the sector with more than 20 suppliers collapsing since the start of the year amid the soaring price of gas.

Bulb said it would be placed into special administration – a process designed to protect customers when a large energy supplier can no longer trade.

What should Bulb customers do?

Bulb customers do not need to do anything at this stage.

Bulb says: “Special administration is designed to allow Bulb to continue to operate as usual so you don’t need to take any action. Your tariffs are not changing, and the price cap applies to all consumer energy tariffs. If you pay for your energy by top up, your top ups will continue to work as normal. If you’re in the process of switching to or from Bulb, your switch will continue.”

An Ofgem spokesperson said: “Customers of Bulb do not need to worry – Bulb will continue to operate as normal. Ofgem is working very closely with Government. This includes plans for Ofgem to apply to Court to appoint an administrator who will run the company. 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.”

Bulb customers may want to take regular meter reading and record them in case of any changes in future.

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What is a special administration?

Special administration is a process that ensures electricity keeps flowing when large energy companies collapse.

Ofgem and the government will appoint an official administrator to run the business until a more permanent solution can be found. The cost of running the business in administration will be paid for by the government.

What happens next?

Ofgem and the government will appoint an official administrator to run the business until a more permanent solution can be found. The cost of running the business in administration will be paid for by the government.

Will bills go up?

Customers are protected from any price rises until April 2022 under Ofgem’s price cap system, so long as they remain on their current deals with Bulb.

Longer term, the rise in wholesale gas prices and the cost of dealing with widespread failures across the industry means bills are likely to go up next year across the sector when the price cap is reviewed next Spring.

Martin Young, an analyst at investment bank Investec, said: “Consumers look set to shoulder the price of failure, possibly to the tune of £75/dual-fuel customer or more. They will rightly want answers.”

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