Octopus Energy records first profit after taking over collapsed rival Bulb
Octopus Energy recorded its first annual profit last year thanks to the takeover of bankrupt rival Bulb.
The supplier had made losses every year since launching in 2016, but rose to a profit of £203m in the 12 months to the end of April.
That compared with a £141 million loss a year earlier after it took bankrupt supplier Bulb out of administration in December 2022.
Bulb was initially bailed out by the government when it declared bankruptcy in November 2021.
It was the largest of more than thirty suppliers that went bankrupt due to a sharp increase in wholesale energy prices. The deal gave Octopus 1.5 million additional customers. Regardless of the deal, another 300,000 consumers signed up. Octopus has 7.7 million customers.
Change of fortune: Octopus had made a loss every year since launching in 2016, but rose to a profit of £203m in the 12 months to the end of April
Higher billings also helped revenues triple to £12.5 billion. Octopus said it is the largest electricity supplier and the second largest household gas supplier in the country.
Founder Greg Jackson said: ‘As a company that supplies directly to millions of domestic and business customers, our commitment to looking after them and our staff is more important than ever.
“I am extremely proud of the way our team has tirelessly helped customers through the energy crisis.”
Octopus said it invested £69 million over the period to keep prices lower – including keeping the standard variable tariff below the energy price cap and reducing fixed costs by 4 per cent.