The cost of keeping Bulb on life ‘could soar to £4bn’

The government will reportedly continue to support Bulb this winter, despite the agreement with Octopus to take on the company’s 1.6m customers

Taxpayers are likely to foot an extra bill of billions of pounds for keeping Bulb afloat this winter.

Over the weekend, the government announced it approved an agreement between Octopus and the special administrators of Bulb that would see the collapsed firm’s 1.5 million customers transferred to Octopus.

However, experts have warned that billions could be spent on buying energy for the company in the coming months as the collapsed supplier will continue to be propped up by the state.

Tony Jordan, a Senior Partner at energy consultancy Auxilione, has predicted that the cost could jump to at least £2.5 billion over the next five months.

Mr Jordan said: “A cold winter, a nuclear threat from Russia. Anything could easily push the price of gas back up very quickly.

“And then that £2.5 billion will look very small because it could go up to four, five or six million.”

In August, consultants forecasted that the cost of bailing out Bulb could leave customers paying an extra £150 on their energy bills.

A government spokesperson told ELN: “These figures are pure speculation.

“While we cannot comment on the specific financials of the commercial deal, due to high market volatility, the government is making sure that we get the best possible outcome for Bulb’s customers and the British taxpayer.”

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