BusinessPostCorner.com
No Result
View All Result
Tuesday, June 3, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

Octopus to repay £3bn to taxpayers for Bulb rescue

June 21, 2024
in Business
Reading Time: 2 mins read
A A
0
Octopus to repay £3bn to taxpayers for Bulb rescue
ShareShareShareShareShare

Bulb had 1.5 million UK customers when it went bust.

It was placed into a so-called Special Administration Regime (SAR), where it was run by the government via Ofgem, the energy watchdog, for less than a year as it struggled to find a buyer.

When Octopus Energy stepped in to take over and add Bulb’s customers to its own, it struck a deal with the government which meant that it would help cover the costs of energy for the affected households to ensure supplies were not disrupted.

The energy was bought by the government and based on wholesale prices, cost £1.63bn.

Under the deal, it was agreed that Octopus Energy would repay the government in line with the level set by the energy price cap, which is decided by Ofgem.

As wholesale gas prices have continued to fall, where Octopus’s agreed repayment price has remained the same, government stands to not only recover the money spent, but make a profit of £1.28bn from the deal.

Greg Jackson, the founder and chief executive at of Octopus Energy, said: “This outcome is a great result for taxpayers.

“Octopus worked hard in the darkest depths of the energy crisis to create a fair deal, meaning that although Bulb went bust with billions of liabilities, it has cost the government almost nothing.”

Roughly £6.1m of other costs that the government has to pay in relation to the SAR remain outstanding, down from the £19.6m forecast as recently as February, according to a letter sent to the Public Accounts committee, external by the permanent secretary for energy security last month.

It means the government will recover more than 99% of the money lent to Octopus Energy.

There are still a number of “uncertainties” to work through though, the letter said, so the final numbers may still be subject to some change.

It has been reported that the SAR model may well be considered if Thames Water were to collapse under its debts.

The Treasury, Department for Environment and regulator Ofwat have been “wargaming” a situation which would see financial consultants run the company on the government’s behalf.

Credit: Source link

ShareTweetSendPinShare
Previous Post

French businesses blame political uncertainty for drop in orders

Next Post

Nvidia single-handedly surpasses Europe’s biggest stock markets

Next Post
Nvidia single-handedly surpasses Europe’s biggest stock markets

Nvidia single-handedly surpasses Europe's biggest stock markets

WEMIX Faces June 2 Delisting After Court Ruling – Can the Gaming Token Bounce Back?

WEMIX Faces June 2 Delisting After Court Ruling – Can the Gaming Token Bounce Back?

May 30, 2025
Plans for banking hub to open in Crowthorne church building

Plans for banking hub to open in Crowthorne church building

May 30, 2025
Thames Water fined £122.7m in biggest ever penalty

Thames Water fined £122.7m in biggest ever penalty

May 28, 2025
Jamie Dimon says ‘don’t put a good foot forward, put the truth forward’ and reveals what would get him into public service

Jamie Dimon says ‘don’t put a good foot forward, put the truth forward’ and reveals what would get him into public service

May 31, 2025
The most EV-friendly country in the world is still loyal to Tesla, as Model Y sales surge in May

The most EV-friendly country in the world is still loyal to Tesla, as Model Y sales surge in May

June 2, 2025
Chime chases  billion valuation in IPO set for next week on Nasdaq

Chime chases $11 billion valuation in IPO set for next week on Nasdaq

June 2, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

Can SHIB Still 10x in 2025? Token Burn and ShibOS May Be the Catalyst

Can SHIB Still 10x in 2025? Token Burn and ShibOS May Be the Catalyst

June 3, 2025
Interim guidance from the IRS simplifies corporate AMT

Interim guidance from the IRS simplifies corporate AMT

June 3, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!