Taxpayer provides £1.7bn loan to support Bulb Energy through crisis

The government has set aside $ 1.7 billion to support the continued operation of Bulb Energy after the donor collapsed.

The court appointed special supervisors from Teneo yesterday to continue running the seventh largest power grid in Britain so that the goods and services of its 1.6 million domestic customers continue unabated.

A $ 1.69 billion loan from taxpayers will fund the project. Managers say it will cost £ 2.1 billion to keep Bulb sales until the end of April. They need to buy more gas and electricity to meet the needs of their customers in the winter.

Kwasi Kwarteng, a business secretary, can release taxpayers’ money to the company if needed, court documents show.

The Bulb, which was launched in 2015, failed to withstand a rise in prices which has also led to the demise of more than 20 small retailers since August.

Two million customers of some unsuccessful retailers have been transferred to solvent companies that have been selected as “final solution providers”. Consumers are already facing a huge bill that is expected to reach billions of pounds to reimburse those who donate their money based on customer failures.

However, the process was considered impossible for the Bulb due to its size, so it has instead gone into a special regime that has never been used in the power sector.

The final payment for Bulb’s death is unclear as specialists will want to reduce and reimburse if possible. He is expected to look to sell customers and Bulb products, perhaps at the best prices next year.

Several companies showed interest in buying the Bulb before the collapse but failed to repay its debts. In the past, Kwarteng said: “We do not want this company to last longer than it should.”

At a meeting in the Supreme Court of London, Justice Adam Johnson said the agency was set up “for the power company to move forward with the aim of being saved if possible”. Choosing a final solution provider “seemed unhelpful here due to the size and importance of the Bulb as a seller”, he said.

The judge added that £ 1.7 billion would be “essential for the Bulb”; court documents show Bulb refused to continue working within December.

Greg Hands, energy minister, said: “Supervisors will temporarily monitor Bulb’s operations, and this includes ensuring, if a new owner is not available, that customers are being safely transferred to another vendor.” It was reported last night that Interpath was appointed manager of Bulb’s parent company based on a major lender.

The Sequoia Economic Infrastructure Income Fund, FTSE 250 fund, is owed £ 55 million by the Bulb. The loan is guaranteed by Simple Energy, the parent company of Bulb. Sky News reported that Sequoia pressured Interpath to be appointed as a manager at Simple instead of AlixPartners because he wanted to protect his interests.

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