Energy firm asks government for £1bn of taxpayer cash so it can fund takeover of collapsed rival
One of Britain’s biggest gas and electricity suppliers has asked the Government for £1 billion to fund its takeover of rival Bulb.
Sky News said Octopus Energy is closing in on an agreement to buy the collapsed company, which has already cost taxpayers billions.
The Government has been trying to sell Bulb since it fell into administration last November.
Ministers stepped in to guarantee Bulb’s customers would still receive energy in their homes while they tried to find a buyer.
Sky News said Octopus Energy is closing in on an agreement to buy the collapsed company, which has already cost taxpayers billions
Octopus, understood to be the only bidder, will likely inject between £100 million and £200 million as part of any deal. But it has asked the Government for £1 billion taxpayer support in return for assuming responsibility for Bulb’s 1.6 million customers.
The Government will receive a share of any profit from Bulb customers as part of the deal.
Bulb collapsed amid the soaring cost of wholesale gas. It has been estimated the cost to taxpayers of its failure could reach over £3 billion.
Octopus has picked up hundreds of thousands of customers in the last year, including Avro Energy’s customer base.
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