Bulb formally engages in special administration: The government has reported energy supplier Bulb has formally entered into special administration with the firm carrying on delivering energy to its customers.
A Special Administration Regime (SAR) is a procedure to protect customers when a major provider falls.
SARs are applied in cases where important services may otherwise be discontinued if normal insolvency processes were fulfilled.
The government will supply the essential funding guarantee that the administration is regulated in a way that guards customers’ supply.
Bulb, which is now providing a predicted 1.7 million customers, has been the largest victim up to now because of the crisis in the energy market.
On Monday, the firm reported its insolvency.
In current months over 20 energy suppliers have gone bust not being able to take on the financial burden made by the soaring energy costs.
Energy Minister Greg Hands stated: “Our overriding priority is to protect consumers & the appointment of administrators will ensure the supply of energy remains normal to Bulb customers across the country, providing vital reassurance while an enduring solution is agreed.
“The administrators will now take temporary charge of operating Bulb and that includes ensuring if a new owner cannot be found customers are safely moved to another supplier.”
Bulb formally engages in special administration