Government to ‘allocate £1.7bn to cover costs of Bulb special administration’

Ofgem has appointed Teneo to be Bulb’s special administrator

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Just three days after the announcement from Bulb that could be placed into a special administration regime, reports suggest that the latest failure could leave taxpayers with a £1.7 billion bill.

At a court hearing on Wednesday, it was revealed that the government has set aside £1.7 billion to support the work of the advisory firm Teneo, the company that has been appointed to handle the administration.

Business and Energy Secretary Kwasi Kwarteng said yesterday in the House of Commons that the regime of special administration was a temporary arrangement that provides an ultimate safety net to protect consumers and ensure continued supply.

Mr Kwarteng added: “The special administration regime will keep bills at the lowest cost that it is reasonably practical to incur while ensuring that the market remains stable.

“The House should understand that we do not want the company to be in this temporary state for longer than is absolutely necessary.

“Supplies remain secure and credit balances will be protected. Finally, all domestic customers in Great Britain are, of course, protected by the energy price cap, which remains firmly in place.”

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