The bill for the rescue of Bulb could be lower than previously thought.

If gas prices remain low, the government will reportedly recoup hundreds of millions of pounds from the sale of Bulb to Octopus.

A few months ago, the government’s Office for Budget Responsibility estimated that the bailout of Bulb could cost £6.5 billion.

As part of the agreement with Bulb, the government agreed to lend Octopus the cost of buying energy for Bulb’s customers, in exchange for repayments by Octopus to the Treasury.

According to estimates shared with The Financial Times, the Treasury is expected to receive £300 million in payments from Octopus in January or £840 million in the three months to April based on energy prices this week.

A BEIS spokesperson told ELN: “The sale of Bulb to Octopus Energy concluded on 20th December and the transfer of customers is now in progress.

“Ensuring that we get the best outcome for Bulb’s customers and the British taxpayer remains our priority.

“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.

“The government will provide the remaining funding necessary to ensure that the special administration is wound up in a way that protects customers’ energy supply. We will recoup these costs at a later date.”

ELN has approached Octopus and Bulb for comment – the companies declined to comment.