Bulb ‘at risk of going bust’ hitting 1.7million energy customers as ‘regulators on standby’ over collapse
CUSTOMERS are being warned that Bulb could be the next energy supplier to go bust.
The UK's seventh largest energy firm is reported near collapse, risking leaving 1.7 million customers in the dark.
reports that officials and regulators are on standby for Bulb to announce it will cease trading as early as next week.
The government said the energy regulator was monitoring the situation.
It would be the latest in a string of providers to collapse.
There were reports that Bulb was near to collapse last month as it emerged the firm was seeking funding.
But The Sun now understands hopes of a rescue deal could be fading.
One company which was considering a takeover of Bulb has reportedly says the firm has liabilities of around £600m, which made a "solvent takeover of the company hard to envisage".
Many firms are struggling to cope with soaring wholesale energy prices.
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At least 12 providers have gone bust since the summer.
Utility Point and People's Energy were two of the first to fold, along with a host of other small providers who met the same fate.
A government spokesperson said: "Ofgem is monitoring the situation across the energy market for the continued impacts on high worldwide wholesale gas prices.
"We have in place the powers and robust processes to ensure customers do not experience any disruption to their energy supply and that costs are minimised if a supplier should exit the market."
Wholesale gas prices have risen 250% since the beginning of the year, creating a strain on the UK energy industry that has even toppled certain providers.
Currently suppliers are forking out for the hiked costs as the government's energy price cap limits what they can pass on to customers.
But households are feeling the pinch too, as the energy price cap has recently increased adding £139 to the average bill.
Those who have already seen their supplier go bust have seen their bills hiked.
Bulb told the Sun: "Our discussions with multiple parties to secure additional funding continue to make good progress and we're encouraged by the drop in wholesale energy prices.
"We expect the government to monitor wholesale prices and their effect on the whole industry, but ministers and Ofgem have been clear we must emerge from the energy crisis with a competitive and innovate market, rather than a return to the oligopoly of the past."
Which energy companies have collapsed this year?
- HUB Energy (August 9)
- PFP Energy (September 7)
- MoneyPlus Energy (September 7)
- Utility Point (September 14)
- People’s Energy (September 14)
- Green (September 22)
- Avro Energy (September 22)
- Igloo Energy (September 29)
- Symbio Energy (September 29)
- Enstroga (September 29)
- Pure Planet (October 13)
- Colorado Energy (October 13)
What should I do if my energy provider goes bust?
Firstly, don't panic. Your supply with not be cut off.
Martin Lewis says a sensible first step is to take an up-to-date meter reading.
The energy regulator, Ofgem, will arrange an interim supplier for you.
Don't try to switch or fix a new deal before that new provider has been assigned.
Once you have a new provider, you can shop around if you wish.
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But because prices are so high at the moment, households are being advised not to lock into a new fixed deal just yet.
Currently it is likely that you'll be better off under a variable tariff because the price cap limits how much you will pay.
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