The cost of keeping Bulb afloat might be higher than previously expected as energy prices continue to rise amid the war raging in Ukraine.

Energy supplier Bulb, which has 1.6 million customers, was put into special administration in November.

In November, wholesale gas prices were around £2 per unit, much lower than the peak of £8 per unit recorded on Monday.

When the special administration regime started, the Treasury set aside £1.7 billion to buy the gas required until the end of the tax year in April 2022.

By that time, it was hoped that a new buyer would be found.

According to the BBC, government officials have admitted that the prospect of selling the business amid this extremely volatile environment seems remote.

Last month, it was reported that Bulb’s special administrators would appoint a financial advisory and asset management firm to handle the sale process of the energy supplier.

Administrators had previously said the company had £640 million of liabilities on October 31st.

A BEIS spokesperson told ELN: “The Special Administrator of Bulb is obligated to keep costs of the administration process as low as possible and we continue to engage closely with them throughout to ensure maximum value for money for taxpayers.”