Mar 23, 2022
Taxpayers face additional £500mn bill for Bulb Energy bailout
The government bailout of failed British energy supplier Bulb will cost taxpayers an additional £500mn over two years, taking the total support required to £2.2bn, according to the independent fiscal watchdog. Bulb, Britain's seventh biggest energy supplier with some 1.6mn customers, was rescued under a process known as "Special administration" in November after it admitted it could no longer withstand sharp swings in wholesale energy prices. The price of supporting Bulb is in addition to an estimated £2.4bn cost to consumers of rescuing customers of the roughly 30 other collapsed energy suppliers. Energy regulator Ofgem estimated in evidence published by the House of Commons business, energy and industrial strategy select committee on Wednesday that it expects companies that rescued orphaned customers to reclaim "Approximately £2.2bn to £2.4bn". Meanwhile, energy companies and fuel poverty campaigners attacked Rishi Sunak, chancellor, for failing to introduce further measures in his Spring Statement to help the majority of households with crippling increases in energy bills this year. Some energy experts warned the move would only benefit affluent households that could afford property upgrades at a time when domestic energy bills are set to rise to record levels.
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