Lights out for Bulb as energy firm fails

THE ENERGY crisis deepened this week with news of the collapse of Bulb, the UK’s seventh biggest energy firm with more than 1.7 million customers. This marks the biggest failure of a supplier since TXU Energy nearly 20 years ago. But unlike TXU Energy, the demise of Bulb hasn’t been caused by a flawed business model, instead it was killed off by the way the Government decided to structure the current energy market with the price cap. Bulb will now be placed in special administration, a process designed to protect customers when a large energy supplier can no longer trade. In short, the supplier will be propped up with taxpayers’ money until it is either rescued, sold, or has its customers transferred to other suppliers. The chances of a rescue or sale of Bulb must be extremely slim, with reports that the supplier has racked up around £1billion in debts, surely a sign of how badly wrong ministers have got the energy sector and an indication of the state of play for the remaining large suppliers? With this in mind, Bulb customers have been getting in touch about their rights. Here are their questions:

I HAVE A CREDIT WITH BULB, WILL I LOSE IT?

Regardless of what happens next with the doomed firm, you will not lose any credit you have with it. The regulator, Ofgem, has made it clear that credits are always protected when an energy supplier goes bust.

IS MY SUPPLY GOING TO STOP?

No, again Ofgem has made it clear that the firm will continue to supply consumers with energy for the time being so there is no need to worry.

I’VE MADE A WARM HOME DISCOUNT APPLICATION VIA BULB, WHAT WILL HAPPEN?

This is more tricky as the position is far from clear. It appears to me that your application may now not proceed meaning you will have to start a new application with a new energy supplier. I have asked Ofgem to clarify the position but have not yet received a response.

SHOULD I LOOK FOR A NEW SUPPLIER NOW?

Another tricky question. Energy experts are advising consumers not to switch yet, but if you need to make a Warm Home Discount application you may need to in order to get your application moving. If you’re in this situation make sure you have evidence of any credit you are owed and a screenshot of your online account (if you have one) before moving.