Octopus ‘asks for £1bn government support to seal Bulb takeover deal’

The energy supplier is reportedly keen on paying up to £200 million to take on Bulb’s 1.6 million customers

Big Zero Report 2022

Octopus has reportedly asked the government for £1 billion in taxpayer funds to finalise the takeover deal of Bulb.

According to Sky News, the deal could involve Octopus, the reported only bidder, paying up to £200 million to take on Bulb’s 1.6 million customers.

It has been reported that the deal may also include a profit-share agreement which would give the government a return for several years on earnings from the company’s customers.

Last week, in its report on energy pricing and the future of the energy market, the BEIS Select Committee stated: “The special administration regime has been used for the first time to deal with the failure of Bulb Energy, leaving taxpayers exposed to billions of pounds worth of costs.

“The decision not to implement a hedging strategy may have led to the sale of Bulb being less desirable and significantly increased costs to taxpayers.”

Since its collapse Bulb has not been allowed to hedge its purchases of gas. 

MPs also recommended that the government should implement a hedging strategy at the company.

A BEIS spokesperson told ELN: “It would not be appropriate to comment on the ongoing mergers and acquisition (M&A) process due to commercial sensitivity.”

Octopus declined to comment on the basis that it is its policy not to comment on M&A rumours or speculation.

Bulb and the company’s administrator Teneo declined to comment.

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