Energy supplier Bulb goes into administration

Following weeks of speculation about their financial situation, energy provider Bulb has gone into administration. 

The supplier, which specialised in renewable energy tariffs, had 1.5 million customers in the UK.

Unlike other energy companies who have failed, Bulb has been placed into ‘special administration. This means their customers - rather being allocated to a new supplier - will remain on a Bulb tariff for the foreseeable future. They will not be taking on any new business during this period however. 

“We’ve made the difficult decision to support Bulb being placed into special administration,” read a statement on Bulb’s website. “This process is designed to protect Bulb members, ensuring there’s no change to your supply and your credit balance is protected.”

Bulb has blamed the energy crisis for it’s recent woes and ultimate demise. The renewable energy supplier also took aim at the UK’s energy price cap, which prevents providers from charging over a certain amount per unit of energy. 

As the cost of wholesale energy is currently higher than the price cap, providers are operating at a loss with less established names going out of business. Bulb are the 22nd energy provider to go bust in the last 3 months 

Special treatment has been afforded to Bulb due to the size of their customer base. Other suppliers that have gone under have serviced a relatively small number of customers. 

Bulb is one of the major energy suppliers in the UK, however, servicing 1.5 million households in the UK. This means that there is no other provider who can take on Bulb’s customer base, therefore Ofgem has taken the unprecedented move to place them under special administration. Bulb will have access to government money to continue operating while plans are laid out to avoid a complete collapse. 

A spokesperson for the Prime Minister explained the decision, saying: “Bulb is around three times larger than the largest company that has become insolvent in recent weeks. That’s why we’re taking the special administration regime approach.

“We will seek to appoint the administrators who will effectively run it and provide energy through that system, but at this stage it’s too early to say what the future of that provider is going forward.”

What to do if you are a Bulb customer?

Currently no action needs to be taken. Unlike other failed providers, Bulb will be run by Ofgem while they try to find a permanent solution. This means that you will remain on the same tariff as you were before and will continue to pay the same amount. 

If your account is in debit (you are owed money by Bulb) then you will want to document this. Take a screenshot of your balance so you have a record should you need to provide it as proof to the administrators further down the line. All this information should be passed onto administrators, but it never hurts to keep a copy yourself.