Bulb Energy is the latest energy provider to be affected by the rise in gas prices, but the Government has announced it will provide funding to allow it to continue trading temporarily. Professor Mike Waterson of the Department of Economics comments on Bulb's situation, which has resulted in them being put into special administration.
Professor Mike Waterson of the Department of Economics said: "Taking on a loss-making firm’s portfolio of customers has benefits and costs- the benefits involve gaining customers, the losses being that these customers are on favourable (to the customer) contracts, or probably being moved on the standard variable tariff which at the moment is loss-making for the suppliers. Bulb involves an awful lot of customers, which implies big losses on takeover. Also, these are probably footloose customers, likely to leave if a better deal is offered by the summer, say."
25 November 2021