Energy firm Bulb on brink of collapse amid government talks with creditor
Bulb, Britain’s seventh-biggest energy supplier, is facing collapse within days amid eleventh-hour talks between the government and the company’s biggest secured creditor.
Sky News has learnt that the company, which launched in 2015 and has amassed 1.7 million customers, is expected to appoint insolvency practitioners imminently.
The precise timing remained unclear on Monday because of the complexity of the looming administration process and ongoing talks between the government and Sequoia Economic Infrastructure Income Fund, which has an outstanding secured loan of roughly £50m to Bulb’s parent company Simple Energy, according to industry sources.
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Sequoia is said to have demanded the repayment of its loan prior to Bulb being placed into administration, they added.
A range of government departments and Ofgem, the industry regulator, began accelerating contingency plans for the collapse of Bulb last month.
Bulb executives and their advisors have been working on an emergency sale of the company, with the likes of Octopus Energy, Ovo Energy, Shell Energy Retail and Centrica, the owner of British Gas, expressing varying degrees of interest.
The ‘challenger’ energy company has also made a series of requests to the government in the last few weeks to help it structure a rescue support package, but these have been rejected, according to another industry executive.
Talks about a solvent rescue deal have also faded, they said.
Bulb’s demise would mark by far the biggest insolvency of the crisis engulfing the sector.
Bulb would be the biggest company to collapse as a result of the crisis engulfing the sector
Its customer base is nearly as large in aggregate as the roughly-20 suppliers which have collapsed during the last three months.
About 2 million households have seen their energy provider succumb to soaring wholesale prices since the start of September.
Bulb’s demise may place at long-term risk the jobs of the roughly-1000 people who work for the company, which was launched in 2015 by Amit Gudka and Hayden Wood, although the bulk of its workforce will not be at risk in the short-term as they will be required to continue in their roles during the special administration.
A Bulb spokesperson said: “We’ve decided to support Bulb being placed into special administration, which means it will continue to operate with no interruption of service or supply to members.
“If you’re a Bulb member, please don’t worry as your energy supply is secure and all credit balances are protected.”
Significantly, the insolvency of Bulb will entail the first use of a resolution process called a Special Administration Regime (SAR), which would guarantee funding for Bulb from the Treasury while administrators seek a restructuring deal, buyer or transfer of the customer base.
That would mean hundreds of millions of pounds of taxpayers’ money being used to fund Bulb’s obligations in the wholesale energy markets to ensure that it can continue operating.
Sky News revealed in September that Ofgem had lined up Teneo Restructuring to oversee the insolvency of a large energy supplier, although it was unclear whether it or AlixPartners, Bulb’s restructuring advisor, would handle the administration.
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The largest of the suppliers to collapse during the current crisis, Avro Energy, had about 580,000 customers.
Bulb has been regarded for some time as being too large to go through Ofgem’s Supplier of Last Resort (SOLR) process – the method by which all of the UK’s other collapsed energy companies have been resolved in recent months.
In the SOLR process, a company’s operating licence is removed and bids are sought from other industry players for its customer base, with losses incurred by the acquirers of those customers then recouped through an industry levy.
Under the SAR, the administrator has a legal duty to consider the interest of customers, unlike a conventional insolvency process where the primary duty is to creditors.
In a long-established statement on its website about SAR, Ofgem said a memorandum of understanding had been drawn up between itself, the Treasury and BEIS, adding: “Provisions for this administration scheme for energy suppliers were included in the 2011 Energy Act.
“It has never been used before because a large energy supplier has never been insolvent.”
A government spokesman did not immediately comment on Monday but said three weeks ago: “Ofgem – as the expert regulator – is monitoring the situation across the energy market for the continued impacts on high worldwide wholesale gas prices.
“We have put in place the powers and robust processes to ensure customers do not experience any disruption to their energy supply and that costs are minimised if a supplier should exit the market.”
About two million customers have seen their energy supplier collapse since the start of September
The regulator added in late October: “There has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers.
“We know this is a worrying time for many people and our number one priority is protecting customers.
“In the event a supplier fails, Ofgem and government have robust processes in place to ensure customers’ electricity and gas supply continue and domestic customers’ credit balances are protected.”
The ongoing crisis in the energy sector has sparked demands from some executives for a removal of the industry price cap or a bailout fund to help with the rescue of smaller suppliers.
Kwasi Kwarteng, the business secretary, has rejected both demands.
Last week, Ofgem said it would seek to adjust the industry price cap more frequently as a result of recent challenges, meaning British consumers are expected to face even higher bills in the years ahead.
The collapse of one of the biggest challengers to the big players – the largest of which are British Gas, E.ON Next, EDF Energy, Scottish Power and Ovo Energy,, which acquired SSE’s retail business – would be a blow to hopes of a more varied and competitive market.
Octopus Energy, which like Bulb supplies 100% renewable energy, has established itself as an independent, well-funded challenger and now boasts 2.5 million customers across more than 4 million accounts.
A crackdown on online pricing has seen investigations opened into eight companies, with a further 100 facing warnings over their conduct.
The competition watchdog said it was formally examining practices at StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical.
The Competition and Markets Authority (CMA) said the 100 other companies, which it did not identify, were getting letters outlining concerns about additional fees and sales tactics.
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The action against StubHub and viagogo – part of the same company after a 2021 merger – was revealed as the government reportedly prepares to separately confirm a ban on the resale of tickets for live events above their face value.
It is part of a long-threatened crackdown on touts to shield consumers from rip-off prices.
The regulator’s separate action falls under the new Digital Markets, Competition and Consumers Act which gives it additional powers to protect consumers.
The CMA said StubHub and viagogo were under review “regarding the mandatory additional charges applied when consumers buy tickets – and whether or not these fees are included upfront”.
The AA Driving School and BSM Driving School were being investigated over their “presentation of mandatory fees on these sites”, the CMA said, “specifically, whether these fees are included in the total price the consumer sees at the beginning of the purchase process.”
Gold’s Gym is under investigation over its presentation of a one-off joining fee for its annual membership, and whether the way it presents this fee breaks the law.
It explained that the examination of homeware retailers Wayfair, Appliances Direct, and Marks Electrical was related to whether their time-limited sales “ended when they said they would, or whether customers are being automatically opted in to purchasing additional services”.
Commenting on the CMA’s action an AA Driving School spokesperson said: “We are comfortable that the £3 booking fee for lessons is already transparent and in line with the CMA’s rules and are more than happy to additionally notify customers earlier in the journey as well, which we have already done.”
The other companies were yet to comment.
The CMA’s first major act under the new digital market rules was to give itself special oversight over Apple and Google.
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The CMA’s so-called “strategic market status” rulings mean both companies will face specific obligations to limit their dominance in smartphone and tablet operating systems (iOS and Android respectively), app distribution and browsers.
Commenting on its latest inquiry, CMA chief executive Sarah Cardell said: “At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine.
“Whether you’re spending your hard-earned cash on concert tickets or driving lessons, joining a gym or buying furniture and appliances for your home, you deserve a fair deal.
“It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.”
“Since the launch of the new regime, we’ve been working hard to help businesses understand the law. But alongside supporting businesses to comply, we’ve always been clear that we will take swift action where we suspect potentially serious breaches of the law.
“This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses.”
Rubbish will continue rotting in the streets of Birmingham for months, union chiefs have warned, after more workers voted to join industrial action.
Agency workers employed by Job&Talent are now joining the dispute for the first time, with the Unite union blaming “an epidemic of bullying, harassment and intimidation”.
And with workers voting to extend the already months-long strike, the union says bins could go uncollected beyond next year’s local elections in May.
Former Labour leader Jeremy Corbyn (centre left) on the picket line in Tyseley, Birmingham, to support striking bin workers. Pic: PA
It comes after footage obtained by Sky News captured a manager from Job&Talent warning agency staff that those who join the strike would be blacklisted by the council.
In the clip, he says: “Those people that do decide to join the picket line, then the council have confirmed to us that they are not going to get a permanent job.”
Unite general secretary Sharon Graham added: “This is a real escalation in the dispute with agency workers now joining picket lines due to the terrible way they have been treated by Job&Talent and Birmingham council.
“The council is spending a fortune it doesn’t have on a dispute that could easily be resolved by agreeing a fair deal for workers.
“Unite does what it says on the trade union tin; we are totally committed to fighting for the jobs, pay and conditions of all members.
“Agency and directly-employed workers alike in Birmingham council’s refuse service have the union’s complete and utter support.”
Striking refuse workers outside Perry Barr depot in Birmingham. Pic: PA
A spokesperson for Birmingham City Council said: “While we are disappointed the dispute has not been resolved as Unite has rejected all our offers, we are continuing to make regular waste collections and our contingency plan is working.
“We have been collecting an average of approximately 1,330 tonnes of kerbside waste every day, more than we did prior to industrial action, and over the last six months we have collected over 100,000 tonnes of kerbside waste.
“There has been a 22 per cent increase in tonnage of waste collected per employee and a 52 per cent improvement regarding missed collections.
“A small number of agency staff are in a separate dispute with Job&Talent. The city council has contingency plans and will continue to look to maintain residents with a minimum of one collection a week.
“Meanwhile we continue to move forward with the service improvements that are long overdue and that our residents need.”
Uncollected refuse bags in the Aston area of Birmingham. Pic: PA
The council also said it would not tolerate blacklisting, and had investigated the matter, but concluded no blacklisting had taken place.
In a statement last week, Job&Talent responded to the leaked footage.
Read more:
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The statement read: “Job&Talent is aware of a short video clip circulating online which shows a Job&Talent manager speaking to agency workers at one of the city’s refuse depots.
“The comments made in the recording were part of a longer discussion and do not reflect the position of Job&Talent.
“We do not engage in or condone any form of blacklisting, and no worker is or would be denied employment opportunities on the basis of lawful participation in industrial action.”
Unite said Job&Talent workers would be able to join the picket line from 1 December.
Bin workers have been locked in a standoff with the council over proposed pay cuts for most of the year.
Union bosses say council plans will leave 171 workers £8,000 worse off a year.
Collections have been disrupted since January, but the row descended into an all-out strike in March.
Uncollected refuse bags in the Sparkhill area of Birmingham. Pic: PA
The council soon declared a major incident and rubbish has continued to pile up across the city as the dispute continues.
Unite claims there have been no formal negotiations over ending the dispute since May.
The union’s lead officer, Onay Kasab, said: “Residents of Birmingham will be rightly concerned to see that the misery of bin strikes can continue through Christmas, New Year and beyond May’s local elections but the council is solely responsible for the ongoing dispute.
“Unite remains fully committed to return to meaningful negotiations to secure a fair deal for affected workers while also ensuring the endemic bullying culture and threats of blacklisting are stamped out.”
In a statement, Job&Talent said: “We acknowledge the ballot outcome and will continue working closely with our workers to address any concerns.
“The result reflects only a small portion of our overall workforce.
“As addressed previously, Job&Talent remains firmly committed to operating with transparency, integrity, and full compliance with employment laws.”
The government has announced plans to make it almost impossible for new housing developments near train stations to be opposed.
Changes to planning rules being announced by the government today will make it easier to build on sites within 15 minutes’ walk of “well-connected” stations, including on green belt land.
It will amount to developments near stations getting a “default yes”.
Housing Secretary Steve Reed – who will appear on Sky News’ Mornings With Ridge And Frost at 7.15am – will also get “stronger powers” to deal with councils that “drag their feet” on approving new homes.
“I promised we’d get Britain building and that’s exactly what we are doing,” he said ahead of the announcements.
“But it has to be the right homes in the right places and nearby transport links are a vital part of that.”
Housing Secretary Steve Reed, who took the job over from Angela Rayner. Pic: PA
Under Mr Reed’s proposals, councils that intend to refuse planning permission to developments with more than 150 homes will have to inform the government, giving ministers the final say.
Some organisations that are legally required to be consulted on planning applications could also be removed from the list, including Sport England and The Gardens Trust.
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The changes involve amending the National Planning Policy Framework.
The Conservatives accused the government of trying to “railroad through unpopular developments”, as it tries to hit its ambitious target of building 1.5 million homes by the next election.
According to the most recent figures, only 231,000 were built between last year’s election and September 2025.
Watch and follow Mr Reed’s interview on Mornings With Ridge And Frost across Sky News and in the Politics Hub.
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