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Cost of bailing out collapsed energy supplier Bulb rises to £6.5bn – THREE times previously predicted from £2.2bn
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The eye-watering cost of bailing out collapsed energy supplier Bulb has reached £6.5 billion.
A document released along with the autumn statement shows that the taxpayer’s bailout of Bulb is now three times the previous forecast of £2.2bn.
The £6.5bn figure means the rescue will cost every UK household £230, further hurting those struggling with rising energy bills. Bulb has been in “special management” since its failure last year.
Rescue: Bulb’s rescue will cost every UK household a shocking £230, adding further pain to households already struggling with rising utility bills.
It was effectively nationalized and it has cost billions to keep it running. The uncertainty seemed to have ended last month when Octopus Energy agreed to take on its 1.5 million customers in a government-approved deal.
That has not been completed after rivals challenge the lack of transparency surrounding the process.
It has been revealed that the taxpayer will remain on the hook after an agreement to cover Bulb’s fuel costs over the winter.
Octopus chief Greg Jackson said it would be a “stable home” for Bulb customers and a “fair deal” for taxpayers.
Andy King of the Office for Budget Responsibility said costs rose because Bulb was in government hands longer than expected.