Energy supplier Bulb said on Monday that it has collapsed into administration.
The firm – which is the UK’s seventh-largest supplier – said: “When we started exploring fundraising options, we were delighted to receive lots of interest from investors to fund our business plans and future growth.
“However, the rising energy crisis in the UK and around the world has concerned investors who can’t go ahead while wholesale prices are so high and the price cap – designed to protect customers – currently means suppliers provide energy at a significant loss.
“Wholesale prices have skyrocketed and continue to be extremely volatile. The gas supply shortage combined with lower exports from Russia and increased demand means they remain high and unpredictable. Prices have hit close to £4.00 per therm recently, compared with 50p per therm a year ago.”
Usually when an energy supplier goes bust, its customers are transferred to a rival supplier through a government process known as ‘supplier of last resort’. However, because Bulb has around 1.7m customers, it has been placed into special administration.
“Special administration is designed to protect the customers of a large energy supplier that’s become insolvent,” it explained. “The special administrator is required by the Government under the 2011 Energy Act to continue to supply energy to customers, and will protect customer credit balances. The process to appoint special administrators is not yet complete but we expect them to be appointed shortly.”
Bulb is the biggest UK energy firm to collapse since the start of the crisis.
The company said its international businesses in France, Spain and Texas will continue trading. They are separate Bulb UK and the firm said they are not immediately affected by special administration process.
