The agreement to sell Bulb may be in breach of EU state aid rules in Northern Ireland, Centrica has said.

British Gas owner has warned that the government’s alleged backing to smooth the sales process of the company which has been in special administration since November 2021, may lead to a test of the so-called Northern Ireland protocol.

Bulb operates in Northern Ireland.

In court documents which were filed last week and were later reported by the Financial Times, Centrica cites “serious public interest issues” related to the deal, including the “UK’s compliance with its international obligations under the UK/EU Trade and Cooperation Agreement” and the “Ireland/Northern Ireland protocol”.

Last month, ELN reported that British Gas, E.ON and ScottishPower raised concerns about the deal of Bulb’s takeover by Octopus.

A BEIS spokesperson told ELN: “We worked with Special Administrators to ensure fair and open competition to give Bulb’s 1.5 million customers much needed reassurance while providing best value for taxpayers. We cannot comment on ongoing legal proceedings.”

Bulb declined to comment.

ELN has approached Centrica, and Octopus for comment – they did not respond before publication.