Bulb Energy is a British energy company that provides electricity and natural gas to residential and business customers. On 24th November 2021, it was announced that Bulb Energy had entered special administration, a legal process in the UK that is used when a company is unable to pay its debts.
The company was placed into the hands of administrators, who are responsible for managing its financial affairs and working to find a solution that will allow the company to continue operating. This can include selling the company or its assets, restructuring its debts, or finding new investors.
It is not uncommon for companies to enter special administration when they are facing financial difficulties, but it is not a guarantee that the company will be able to recover and continue operating
Why did Bulb go into special administration? Why not use SoLR?
It is not clear why Bulb Energy decided to enter special administration rather than use another legal process, such as a scheme of arrangement (SoLR) or administration. It is though that it is due to having approximately 1.7 million customers across the UK (6% of the overall market).
An administrator will now take over the responsible for managing the company’s financial affairs and working to find a solution that will allow the company to continue operating.
Teneo has been appointed as the special administrator of Bulb Energy, a British energy company that provides electricity and natural gas to residential and business customers. Teneo is a global consulting firm that provides advisory services to companies facing financial challenges, including restructuring, turnaround, and special situations.
As the special administrator of Bulb Energy, Teneo will be responsible for managing the company’s financial affairs and working to find a solution that will allow the company to continue operating. Teneo’s experience and expertise in these types of situations make them well-suited to help Bulb Energy navigate its current challenges and work towards a sustainable future.
Why is Bulb Energy in difficulty?
It is not clear why Bulb Energy is in financial difficulty. There could be a variety of reasons for this, including changes in market conditions, increased competition, or internal financial mismanagement. Without more information about the specific circumstances facing the company, it is difficult to say for certain why it is experiencing financial difficulty.
It seems that Bulb Energy, like many other energy companies, has been facing challenges due to the volatility and high cost of wholesale energy prices. The gas supply shortage and lower exports from Russia, combined with increased demand, have led to prices that are much higher than they were a year ago.
These high and unpredictable prices have made it difficult for energy companies to operate profitably, and it is possible that this has contributed to Bulb Energy’s financial difficulties. It is also worth noting that the current price cap, which is intended to protect customers from excessively high energy costs, is set at a level that is well below the current cost of energy.
This may have put additional pressure on energy companies to find a way to cover their costs and remain financially viable. The news about Nord Stream 2 and the uncertainty surrounding the project’s approval may have also had an impact on energy prices and contributed to the challenges faced by Bulb Energy and other companies in the industry.
Octopus Energy completes acquisition of Bulb
Octopus Energy has announced that at 23:58 on the 20th December it has completed the acquisition of Bulb Energy, a British energy company that provides electricity and natural gas to residential and business customers. This acquisition marks a significant milestone for Octopus Energy, which has quickly established itself as one of the leading players in the UK energy market.
The company is known for its focus on sustainability and its use of technology to provide a more efficient and customer-friendly service. It is not clear how the acquisition of Bulb Energy will impact the company’s operations or its customer base. However, it is likely that Octopus Energy will be looking to integrate Bulb Energy’s assets and customer base into its own operations, in order to further expand its reach and continue its growth in the UK energy market.
Read more: Small business going out of business due to growing energy costs
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.