Bulb Energy customers will be moved to Octopus Energy.

[Deleted User]

bristolleedsfan said:

Dolor said:

This is an interesting snippet from the FAQs:

'Octopus is paying the government to take on Bulb’s customer base – believed to be more per customer than any supplier paid in taking on the 29 failed suppliers since September 2021.

In addition, taxpayers will benefit from a profit-share agreement for a period of up to 4 years, reducing the overall cost to UK taxpayers.'

A few months ago, Octopus wanted £1Bn to takeover Bulb's customers. An unintended benefit of the EPG?

Octopus were reported to have wanted £1Bn to buy energy in advance for Bulb customers which Octopus would have paid back.

https://www.bbc.co.uk/news/business-62367992  31 July

"The £1bn funding is part of a package being discussed where Octopus would also pay more than £100m for Bulb's customers as well as entering a profit-sharing deal with the government"

Well yes, they don't need a loan in advance to buy energy any more because the government is just paying for the energy anyway.

StartledJesus

Sneaking through on a weekend? I had noticed that we were perhaps being softened up/waters tested with some leaks last week, and criticisms from the other Big Suppliers who were due to lose out. 

janbeno

I wonder if this will impact the price Octopus customers will be paying, we are already paying a premium for the failed suppliers like mine Avro?

CanNeverThinkOfAUsername

I think they have done it on a weekend due to the fact phone lines are closed, so they don't have Bulb customers calling Octopus asking for news. Even tho the website says don't call some people will still call!

[Deleted User]

janbeno said:

I wonder if this will impact the price Octopus customers will be paying, we are already paying a premium for the failed suppliers like mine Avro?

Octopus customers are not paying any premium for the failed suppliers.

ariarnia

well no more than anyone else paying the solr costs thru the standing charge. we still dont know if they'll decide the admin costs of bulb or even the price guarentee will be recovered via the standing charge. 

MattMattMattUK

ariarnia said:

well no more than anyone else paying the solr costs thru the standing charge. we still dont know if they'll decide the admin costs of bulb or even the price guarentee will be recovered via the standing charge. 

We do not know about Bulb, by the time this is all done it will have cost somewhere between four and six billion pounds. The Energy Price Guarantee is funded via general taxation, at least as it currently stands. To recover it via the standing charge would require the addition of £5.80 per day to the standing charge for a year based on the current six month duration, or the equivalent pro-rata over however long it was spread out, so I cannot see that being added to the standing charge. 

stewie_griffin

brewerdave said:

Must make Octopus one of the big 5 now ?

They were already the 4th largest. By adding the customers bulb have will easily take them past EDF and not too far off E.ON Next in second place. Octopus will have approx 16% market share and E.ON have about 17.5%. I can see Octopus overtaking E.ON some time next year.

wakeupalarm

Is this through the SOLR process and will consumers have costs added onto standing charges next year to pay for it?

ariarnia

wakeupalarm said:

Is this through the SOLR process and will consumers have costs added onto standing charges next year to pay for it?

i dont think so. its an agreed and negotiated transfer not something ofgem arranged via the solr process. though we dont know if the administration costs to date from bulb might be included in the sc or not.