If the application is successful, Bulb, which has around 1.7 million customers, will be run as normal by administrator Teneo, until a potential buyer can be found, or until its customers leave.
In what has been dubbed by some as a too-big-to-fail alternative to Ofgem’s usual process, Bulb will keep serving customers.
The company is three times larger than any other energy supplier that has failed in recent years. Normally Ofgem simply lets a firm fail and moves its customers to a new supplier.
The regulator said: “Ofgem has applied to the court to appoint a special administrator to run Bulb Energy Limited.
“Customers of Bulb do not need to worry. If a special administrator is appointed, they will see no disruption to their supply, their price plan will remain the same, and any outstanding credit balances, including money owed to customers who have recently switched, will be honoured.”
The Department for Business, Energy & Industrial Strategy said: “Energy regulator Ofgem, with the Government’s consent, has made an application to the court. We do not comment on ongoing court proceedings.
“The Special Administration Regime is long-standing, well-established mechanism to protect energy consumers and ensure continued energy supply when a supplier fails.
“Bulb customers do not need to do anything, there will be no disruption to supply or current energy prices, and credit balances are protected.”
Since the beginning of September, 22 energy suppliers have failed. They were pushed out of the market by a spike in gas prices.
As a result of these prices, and a cap on what companies can charge their customers, businesses have been forced to sell energy for less than they bought it for.
Some of the biggest companies buy their gas far enough in advance that they have avoided the worst impacts of the price spike.
However those who have not have been placed under unprecedented pressure.
Source Link Ofgem applies to put Bulb in special administration