Energy provider light bulbs are handed £ 1,000 per customer to continue trading

The seventh largest energy company came to power this week, and now its supervisor will get £ 1.7 billion to keep it afloat while they are thinking of a solution.

The news shocked 1.7 million light bulb customers.

The manager of the failed energy company Bulb will get £ 1.7 billion (£ 1,000 per customer) to keep it going.

Earlier this week, the light bulb announced it was Enter the special administration To prevent it from going out of business.

Administrator Teneo earns £ 1.7 billion to continue to power 1.7 million light bulb customers while a solution is being found.

This cash comes from taxpayers through the government.

However, the government may be able to get this cash back later.

A statement from the Department for Business, Energy and Industrial Strategy said: “Government provides the necessary funding to ensure that the administration is controlled in a way that protects the supply of its customers.

“The government will be able to recover these costs at a later date, ensuring the best results for Bulb customers and UK taxpayers.”

Normally, when an energy company suspends a transaction, another energy provider takes over the customer.

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Light Bulb was the first energy company in the UK to enter the special administration

However, Bulb is huge (the seventh largest energy company in the UK), and it is unlikely that one company will swoop in and take over all users, especially if the energy price is very high.

Therefore, Energy Regulator Ofgem has put Bulb under control.

The administrator will try to help by arranging the sale of the light bulb or rebuilding it in some way.

All of the light bulb’s energy comes from green, renewable resources.

A light bulb spokesperson said:

“If you’re a light bulb member, don’t worry, the energy supply is safe and all your credit balances are protected.”

Light bulbs are the first energy providers to have special management.

Currently, light bulb customers are unaffected. Currently, you can use energy as usual and there is no additional charge.

Your credit balance is also protected.

About 6% of UK homes get their energy from bulbs

Energy provider Is out of business Because of the energy price cap, it is not possible to pass on all the rising gas costs to consumers.

The energy price cap is currently £ 1,277 per year for people using the average amount of energy and is set by the regulatory agency Ofgem.

Energy providers say that price caps mean that energy must be sold at a price that is much lower than the cost of supply.

This imbalance means that many had to stop trading.

This happened 27 companies excluding light bulbs since September 2020 Meanwhile, another 19 energy companies have stopped trading since 2019.

The light bulb tried-and failed- Find a buyer for weeks..

An executive at a company that considered buying a light bulb said it had about £ 1 billion in debt.

Energy Minister Greg Hands said:

“The administrator is temporarily responsible for the operation of Bulb, including ensuring that customers are safely transferred to another supplier if a new owner is not found.”

The light bulb was founded in 2015 by Amit Gudka and Hayden Wood and powers about 6% of UK homes.

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Energy provider light bulbs are handed £ 1,000 per customer to continue trading

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