Energy firm Bulb enters administration as crisis continues

24th November 2021 | News

On 22nd November, Bulb Energy entered administration. Bulb is the most recent and far largest UK based casualty of the international energy crisis.

The collapse of Bulb will no doubt cause great concern for those affected by rising energy prices and does not bode well for the short-term future of green energy.

What is Bulb?

Bulb is the UK’s seventh-largest energy supplier. It was founded in 2015 and has amassed 2.2 million customers. Bulb will be placed into ‘special administration’, meaning that the government will run the company, in collaboration with regulator Ofgem. Usually, if a smaller supplier collapses, another energy firm will be appointed to take on its customers. However, Bulb is too large for this to be viable. The largest energy company to go into administration prior to Bulb was Avro, which had 580,000 customers.

Why have they collapsed?

Bulb issued a statement where they indicated that the skyrocketing prices of gas have caused the company to be unable to continue trading.

Gas prices have recently hit £4 per therm, up from 50p per therm in November 2020, with most of this increase taking place in the last three months. For clarity, the price cap is currently set at around 70p per therm.

How will staff and customers be impacted?

At the moment, it is not clear how the collapse will affect Bulb’s staff and customers. Bulb has more than one thousand members of staff who are likely unsure of their futures with the company. Furthermore, Bulb has claimed that their customers should not see an interruption to service or supply for the time being at least. However, it is uncertain whether customers will be kept on tariffs with the same sustainability credentials.

Bulb has confirmed that their international businesses in France, Spain and Texas will continue trading, as they are separate entities from Bulb UK.

As always, if you would like any further information regarding the above, please feel free to contact our offices by email info@williamsoncroft.co.uk.

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

News

Christmas closure dates

We would like to let you know that our offices will be closed for the Christmas period from 1pm on Friday 24th December 2021 and will reopen at 9am on Tuesday 4th January 2022. Please be advised that while the office will be open on the morning of the 24th, we will be...

HMRC reminds Christmas shoppers about post-Brexit EU goods charges

HMRC have issued warnings to customers to be mindful that they may come across unexpected goods charges when buying goods from the EU in the run-up to Christmas. These rule changes came into effect on 1st January 2021, upon the completion of the UK’s departure from...

Contact

0161 399 0121

York House, 20 York Street, Manchester, M2 3BB

0151 303 3112

Avenue HQ Liverpool, 17 Mann Island, Liverpool L3 1BP

Contact us

© Copyright 2020 Williamson & Croft LLP - Registered No OC402211