Octopus takeover of taxpayer-backed Bulb challenged in court by energy supply rivals

EFFORTS to find a way out of the biggest taxpayer rescue since RBS have suffered a setback after rivals challenged the deal.

A judge has delayed a hearing to confirm the sale of collapsed energy supplier Bulb to Octopus Energy, so rivals can consider whether they want to launch a judicial review.

British Gas and Scottish Power yesterday derailed the court hearing to set a date for the takeover to complete, demanding the hearing be adjourned while they consider their options.

The pair, two of Britain’s largest suppliers, raised concerns about “transparency” and “fairness” in the takeover, approved on Oct 29 by Grant Shapps, the Business Secretary. David Allison KC, representing Scottish Power, urged the business and property court in Birmingham not to “act as a rubber stamp”.

The move throws a spanner in efforts to resolve Bulb’s future following its government bailout one year ago. It also marks a challenge from the legacy “Big Six” suppliers to the rapid growth of seven-year-old Octopus Energy. Bulb collapsed in November 2021. It has been bankrolled by taxpayers under the government-backed special administration regime, with costs of £1.2bn in the 2021/2022 financial year alone.

Jonathan Adkin KC, for British Gas, said: “There has been a serious lack of transparency in relation to this matter.”

Richard Fisher KC, acting for the administrators, argued objections had no substance.

Mr Justice Zacaroli agreed to adjourn the hearing. It will now be heard at a date yet to be fixed towards the end of November or early December.