Each of the UK's 31 million taxpayers may have to pay £200 to bail out the failed energy company.
Energy firm Octopus Energy is on track to buy collapsed rival Bulb which is being run by administrators after being bailed out by taxpayers.
However, many of these companies had little or no shock-absorbing financial reserves. That was ok as long as they could pass on any rises in wholesale costs to their customers. Ofgem had a system whereby the customers of these small, failed companies were absorbed by the larger, surviving companies. The additional cost incurred by those companies as they had to buy more energy at high prices for new customers, was passed on to all consumer bills over time.
To transfer Bulb back into private ownership, the government has to set aside money to protect the would-be buyer from taking on risks that might ruin the company acquiring it.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Brexit ‘added over £200 to food bills over last two years,’ research suggestsBrexit added over £200 to household food bills in the two years to the end of 2021, new research suggests.
Read more »
Bulb sale to Octopus faces further delay as rivals mount challenge\n\t\t\tJournalists in 50+ countries follow the constant flow of money made and lost in oil & gas while\n\t\t\ttracking emerging trends and opportunities in the future of energy. Don’t miss our exclusive\n\t\t\tnewsletter, Energy Source.\n\t\t
Read more »
Bulb sale to Octopus faces further delay as rivals mount challenge\n\t\t\tJournalists in 50+ countries follow the constant flow of money made and lost in oil & gas while\n\t\t\ttracking emerging trends and opportunities in the future of energy. Don’t miss our exclusive\n\t\t\tnewsletter, Energy Source.\n\t\t
Read more »
Centrica proposed rival rescue of energy supplier Bulb\n\t\t\tJournalists in 50+ countries follow the constant flow of money made and lost in oil & gas while\n\t\t\ttracking emerging trends and opportunities in the future of energy. Don’t miss our exclusive\n\t\t\tnewsletter, Energy Source.\n\t\t
Read more »
Just 22 percent of techies in UK aged 50 or older, says BCSWhy not recruit mature folk from outside industry? Why not keep experience in place for longer
Read more »
UK government to test Starlink for those hard to reach areasBut why Elon Musk's satellite broadband biz and not govt-funded OneWeb?
Read more »