Energy supplier Bulb is to enter into special administration, pointing to the continuing energy crisis.
A spokesperson for the company – which is responsible for 1.7 million customers, or 6% of the UK market – 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.”
The move comes after the supplier confirmed in September that it was looking for new funding opportunities due to the high gas prices and the strain they were having on the UK energy sector.
In a blog published by Bulb today, it highlighted that the gas supply shortage, lower exports from Russia and increasing demand has meant the energy sector remains unpredictable. Prices have hit close to £4 per therm recently, up from 50p per therm a year ago.
“We’ve always been big supporters of the idea of a price cap to protect customers, but the current price cap is set at a level around 70p per therm, well below the cost of energy,” the blog states, adding that the news that Germany had suspended its approval process for Nord Stream 2 – a new gas pipeline from Russia to Europe that – has sent the gas price up again last week.
Bulb noted that a number of suppliers have failed in recent months due to this industry instability, with more expected in coming months. This included Social Energy Supply and Neon Reef shuttering just last week (17 November), along with Omni Energy, MA Energy, Zebra Power, Ampoweruk and Bluegreen Energy Services all this month.
Goto Energy, Pure Planet, Colorado Energy, Daligas ENSTROGA, Igloo Energy, Symbio Energy, Hub Energy, Green Network Energy, Simplicity Energy, Avro Energy, Utility Point, People’s Energy, PfP Energy and MoneyPlus Energy have all ceased to trade this year.
The number of suppliers in the UK market has more than halved in 2021 according to research from Cornwall Insight.
More to follow on Bulb entering special administration…