Energy supplier Bulb has gone bust and placed into special administration - but will continue to supply 1.7 million customers as normal.
The company’s demise is the latest in the sector with more than 20 suppliers collapsing since the start of the year amid the soaring price of gas.
Bulb said it would be placed into special administration – a process designed to protect customers when a large energy supplier can no longer trade.
What the company said in a statement
“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,” the company said on Monday.
“If you’re a Bulb member, please don’t worry, as your energy supply is secure and all credit balances are protected.”
Bulb’s parent company to enter administration
Bulb’s parent company, Simple Energy, will also enter administration.
However Bulb’s international businesses in France, Spain and the US will continue trading.
Bulb becomes the first company to rely on regulator Ofgem’s special administration regime.
What will happen next to Bulb?
In the past, failed suppliers have been small enough for their customers to be picked up by one of their rivals.
An administrator will be appointed to run the company until it is either rescued, sold, or has its customers transferred to other suppliers.
According to reports from Sky News, Bulb’s biggest creditor was in discussions about refinancing the business, however, it appears they have now withdrawn that support.
Customer credit balances will be protected, Bulb said.
What happens now for Bulb’s customers?
Consumers will still be supplied by Bulb, but the company’s administrators are in control.
Bulb customers are protected under Ofgem’s safety net, which means the energy supply will continue and all outstanding credit balances of domestic customers will be protected and transferred to a new supplier.
Customers will be contacted by a new supplier, who will be appointed by Ofgem, financial expert Kevin Mountford said.
So far, suppliers such as EDF and British Gas have taken on smaller energy firms’ customers.
But, if no new supplier can be found special administrators will be contacted by Ofgem and the Government.
Ofgem’s current advice to customers is not to switch to another energy supplier until a new one has been appointed and you have been contacted by them in the following weeks
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