Bulb Energy latest news – Special administrators to hire US bank to find buyer for collapsed UK company ‘within days’

What has Ofgem said about the collapse?

Following the news that Bulb energy will go into administration, an Ofgem spokesperson said: “Customers of Bulb do not need to worry – Bulb will continue to operate as normal.

“Ofgem is working very closely with Government. This includes plans for Ofgem to apply to Court to appoint an administrator who will run the company. Customers will see no disruption to their supply and their account and tariff will continue as normal.

“Bulb staff will still be available to answer calls and queries.”

Explained: What happens to my Bulb credit?

Any credit you have with Bulb is protected when you are moved by Ofgem to another supplier.

This should be protected under Bulb’s special administration too.

Justina Miltienyte from USwitch said: “The most important thing for consumers to know is that their energy supply will continue to run as it always has done, and any credit balances will be protected.”

Explained: What is energy credit?

An estimated 21million households pay energy bills by direct debit, paying the same amount each month based on estimated use over the entire year.

But actual use can vary through the seasons, as more energy is generally used in winter when the heating is on and less in summer when the weather is warmer.

During the summer months customers can often end up paying more than the energy they use, leaving them with a credit balance with their energy company.

Explained: Can I still apply for a Warm Homes Discount?

If you are Bulb customer who has already applied, you have not technically been switched yet so you can continue the process with them for the time being.

HOWEVER if you have not applied yet – or the application does not go through after you change suppliers you will need to reapply with your new supplier.

The best place to check who your new energy supplier is and whether they offer the Warm Homes Discount 

Explained: Where should switched customers go for a Warm Home Discount?

Energy companies are offering the Warm Home Discount are listed below with the former firms.

•  – customers who were with People’s Energy, MoneyPlus Energy, PfP Energy, Bluegreen Energy and Zebra Power
•  – Simplicity Energy
•  – customers who were with Utility Point, Green network Energy
•  – customers who were with Symbio Energy, Igloo Energy, ENSTROGA, Hub Energy
•  – customers who were with Avro Energy
•  – customers who were with Green Supplier Ltd, GOTO, Pure Planet, Daligas, Colorado

Some suppliers which have taken on customers from failed energy firms – such as Utilita and Yu Energy – either don’t offer the Warm Home Discount or applications have already closed.

Warm homes warning (continued)

Anyone who already applied through an energy company that’s now defunct should reapply for the discount.

The cash is given out on a first come, first served basis and the earlier you apply the more likely you are to get the cash before it runs out.

Justina Miltienyte, energy policy expert at Uswitch, said: “Eligible consumers are in danger of falling through the cracks if their supplier goes bust and they are moved to another provider.

“The £140 may not be enough to balance out rising energy prices, but it will still be a lifeline to many people on low incomes this year.

“If you believe you are eligible for the discount, we recommend that you apply for it through your supplier as soon as possible.

“Even if you applied with an energy company which has since gone bust and moved to a new provider, we recommend that you re-apply with the new supplier so you do not miss out.”

Warmer Homes warning for Bulb customers

Millions of energy customers whose suppliers have gone bust have been urged to still apply for £140 off their bills.

The Warm Home Discount Scheme is designed to help those on low incomes struggling with energy bills.

Pensioners on the lowest incomes get the discount automatically but anyone else must apply to their energy supplier directly.

At least 22 energy firms have collapsed since August as companies battle against rocketing fuel prices.

But research by Uswitch shows that applications for the scheme are still open at the big six energy firms that have taken on millions of customers now without a supplier.

You are eligible if you have been switched onto that supplier – regardless of who you were with before.

Explained: What do I do while I wait for a new supplier?

The best thing to do is to sit tight and wait for Ofgem to give you a new supplier – DO NOT try to switch as you will be worse off.

In the meantime take meter readings and wait for your new supplier to contact you in a few weeks’ time – so you know exactly what you have used ahead of getting any new bill.

You can switch when your new provider confirms your account details.

Explained: Why can’t I save money by switching?

Cheap fixed-price discount deals have all been scrapped.

Many fixed-price customers are on deals costing between £800 and £900 a year, which were available until recent months.

The cheapest fixed deal available now is £1,427, £150 more than £1,277 variable-rate price cap tariffs.

Some fixed deals cost £1,600-plus — double some customers’ fixed price bill.

Explained: Will my new tariff be more expensive?

Yes. With the widespread collapse of energy suppliers, millions of people have been reassigned to new suppliers. They only have to honour the existing contract for a fixed period of time.

Then the bill will inevitably go up due to natural gase prices.

HOWEVER if you can take the variable tariff rather than the fixed one – as few fixed tariffs will be cheaper than the energy price cap and you will not see the benefit of lowering costs in the future.

How to be merry with less energy (continued)

However, switching to more energy-efficient LED lights in the same display significantly cut the costs.

The same light display using LED bulbs would only add £1.27 to a household’s bill over the same period, explains Uswitch.

This is based on average estimates for electricity prices of 18.9p per kWh from the energy regulator, Ofgem.

An LED light only uses 0.1W per bulb – 10% of the energy used by non-LED lights.

How to be merry with less energy

Last year, the average family had their Christmas lights up from November 26 to January 6, .

That’s 43 days of dazzling Christmas lights burning through energy.

For a household with 200 fairy lights and a light-up reindeer – the most popular Christmas light decorations – this could add £12.70 to their bill over that period.

This is based on the lights running for six hours a night.

Explained: How to figure out what energy you are using

The cold has us all turning up the heaters in our home and taking extra warm showers.

But that also means that energy bills are sky rocketing, and people will be looking to see how they can save money by cutting down on appliance use.

Some may even want to look at alternative heat sources like log burner and electric heaters – but beware of the hidden cost.

Here’s the equation you use to work out how much your devices are costing you:

Cost = power (kilowatt) x cost of one kWh (pence) x the length of time (just the one off meal, or over a week or month.)

Explained: Why are energy bills rising?

Gas and electricity bills are on the rise after the energy price cap increased last month.

This pushed the amount that suppliers can charge on default tariffs up from £1,138 to £1,277.

But households have also been hit by the collapse of a string of energy suppliers.

Many small providers have struggled to cope with rising energy costs and have shut down, reducing competition in the market and leaving customers in the hands of bigger players with more expensive tariffs.

Explained: Why did Bulb collapse?

It comes as Bulb investors are no longer willing to pump more money into the firm, with debts now thought to be more than £600million.

Regulators were on standby for the imminent collapse of the company as early as last month.

A rescue deal was in the works to save the company, but The Sun reported that hopes to pull the company back from the brink were fading.

One company which was considering a takeover of Bulb reportedly claimed the firm has liabilities of around £600m, which made a “solvent takeover of the company hard to envisage”.

Will someone buy Bulb?

Other firms including Ovo, Octopus and Shell Energy have been approached to ask if they would like to buy out Bulb, but the debts are thought to be too big.

It comes as Bulb investors are no longer willing to pump more money into the firm, with debts now thought to be more than £600million.

Regulators were on standby for the imminent collapse of the company as early as last month.

A rescue deal was in the works to save the company, but The Sun reported that hopes to pull the company back from the brink were fading.

One company which was considering a takeover of Bulb reportedly claimed the firm has liabilities of around £600m, which made a “solvent takeover of the company hard to envisage”.

Explained: What is the warmer homes discount?

Rather than money being paid to you, the Warmer Homes Discount is a £140 discount applied by your energy supplier.

It is designed to reduce your heating costs between October and March when it is colder outside and you are likely to use more gas and electricity.

The discount is only available if your supplier has chosen to offer it.

Older people receiving the guarantee element of pension credit are eligible for the discount – known as the “core group” – and should receive a letter by December about how to get it.

Outside of the “core group,” You may still be eligible if you receive certain means-tested benefits such as Universal Credit.

You will need to apply to your supplier if they provide the support and check their criteria.

Who will my new supplier be after Bulb?

Normally Ofgem will move customers of failed firms to a new supplier but as Bulb is in special administration, Bulb will continue to supply customers for now

Bulb could still be rescued by another company that could takeover customer's accounts.

Miltienyte said: “The administrator may decide to close the supplier down in the future, and move customers elsewhere.

"But customers will be kept informed by Ofgem and the administrators about what will happen next.”

What happens to my Bulb credit?

Any credit you have with Bulb is protected when you are moved by Ofgem to another supplier.

This should be protected under Bulb's special administration too.

Justina Miltienyte from USwitch said: “The most important thing for consumers to know is that their energy supply will continue to run as it always has done, and any credit balances will be protected."

An estimated 21million households pay energy bills by direct debit, paying the same amount each month based on estimated use over the entire year.

But actual use can vary through the seasons, as more energy is generally used in winter when the heating is on and less in summer when the weather is warmer.

During the summer months customers can often end up paying more than the energy they use, leaving them with a credit balance with their energy company.

Energy price cap will still apply to bills

There will be no change to tariffs and the energy price cap will still apply to bills.

Customers should continue to be able to log into their accounts online to check their balance and download any bills.

Gillian Cooper, head of energy policy for Citizens Advice, said: “Bulb customers will be protected by the special administration process and they shouldn’t see much change to their service for now."

What has Ofgem said about Bulb?

An Ofgem spokesperson said: “Customers of Bulb do not need to worry - Bulb will continue to operate as normal.

"Ofgem is working very closely with Government. This includes plans for Ofgem to apply to Court to appoint an administrator who will run the company.

"Customers will see no disruption to their supply and their account and tariff will continue as normal."

What happens to my energy supply if I'm a Bulb customer?

Bulb customers will find their gas and electric supply will continue as normal.

The regulator Ofgem ensures that no one will ever be left without energy if any supplier goes bust.

Usually they will find you a new supplier instead and the advice is to sit tight until this happens.

But, as Bulb is so big it has gone into special administration.

That means that it will continue to operate as normal and customers don't need to do anything.

Check your boiler

An estimated 100,000 homes may need vital boiler checks, repairs and maintenance over the next two weeks, British Gas has estimated.

The firm says the next few weeks will be crucial as Jack Frost comes to visit.

Joanna Flowers, a British Gas service and repair engineer, said: “The next couple of weeks could be the first test for many households’ heating systems this year.

“We know that having no heating or hot water is people’s worst winter nightmare in the home, so rather wait for the cold weather to set in before finding out something’s not working as it should be, we’re advising households to prepare now. 

“Looking after your boiler is key, as well as making a few small changes around the home to ensure the rest of your heating and hot water system is working effectively and efficiently. And remember, a heating system that’s in good shape also won’t use more energy than it needs – which will help keep your bills down.”