Energy regulator Offgame said today that customers of the collapsed energy supplier Bulb’s “no need to worry” as it asked a court to appoint an administrator.
If the application is successful, Bulb, which has about 1.7 million customers, will be run by Teneo Restructuring until a potential buyer is found, or its customers leave.
This will be the first test of a new insolvency system designed to protect the customers of a company considered very large-to-fail.
Unlike Ofgem’s usual supplier of last resort SOLR process, Bulb will continue to serve customers.
The company is three times bigger than any other energy supplier that has failed in the gas price crisis.
The regulator said: “Bulb customers need not worry. If a special administrator is appointed, they will not see any disruption in their supply, their pricing plan will remain the same, and any outstanding credit balances, including owed money from recently switched customers, will be honored.
The Department of Business, Energy and Industrial Strategy said: “Energy regulator Offgame has made an application to the court with the consent of the government. We do not comment on ongoing court proceedings.
“Special Administration Regime is a long-standing, well-established mechanism to protect energy consumers and ensure a continuous energy supply when a supplier fails.
“Bulb customers don’t have to do anything, there will be no disruption to supply or current energy prices, and credit balances are protected.”
Since the beginning of September, 22 energy suppliers have failed. They were driven out of the market by rising gas prices.