- Legal completion of the acquisition of Bulb Energy by Octopus Energy took place at 23:58 on the 20th December
- Octopus Energy was chosen to take on Bulb following an open competition run by Bulb’s special administrators
- Deal represents good value for taxpayers and ends period of uncertainty for 1.5m Bulb customers
According to the company’s website press release on December 21, 2022, the completion of the deal to transfer Bulb customers to Octopus Energy took place last night, bringing vital reassurance to Bulb’s 1.5 million customers following a year of uncertainty.
Customers will remain on Bulb systems for a while, and will continue to be looked after by the same Bulb team.
The agreement, implemented via a new process known as the Energy Transfer Scheme (ETS), will save taxpayers millions of pounds as Bulb moves back into private ownership and the government is no longer directly exposed to the volatility of the wholesale energy market.
The taxpayer will also benefit from a profit share agreement that forms part of the deal.
The ETS was approved by the Business and Energy Secretary on the 7th November and the High Court ruled that the transfer can go ahead, setting a commencement date for the ETS to take place at 23:58 on the 20th December.
Greg Jackson, CEO and founder of Octopus Energy, comments: "This starts to bring an end to the huge financial exposures for taxpayers and paves the way for a better and more certain future for Bulb's staff and customers.
"For now, we'd ask Bulb customers to sit tight - they will still be looked after by the Bulb team. We'll be in touch with customers as and when their account is ready to move to Octopus' award-winning systems."
Judicial Reviews have been received against the Business and Energy Secretary’s decision to approve the sale of Bulb Energy, with court dates for the reviews set for next year.
Octopus Energy Group has a strong track record in large scale customer migrations, having completed over 10 acquisitions of energy supply companies and their customers. Most recently Octopus moved over 580,000 Avro Energy customers to its Kraken platform – the largest customer migration ever conducted under the supplier of last resort (SOLR) process.
Octopus is headquartered in the UK and operates in 14 countries, with significant businesses in energy retail, generation, technology and electric vehicles. It has received over £1 billion in investment from global giants, including investment funds and large energy companies.
Bulb customers can get regular updates on this process on the Bulb information page.
Notes to editors:
- Octopus is paying the government to take on Bulb's customer base – it is believed to represent a higher amount per customer than suppliers typically paid to take on the customers of the 29 energy retailers who have failed since September 2021.
- The agreement was approved by the Secretary of State and will be implemented through an Energy Transfer Scheme (ETS). It will see Bulb’s relevant assets moved into a new, ringfenced business – separate from Octopus Energy – to protect consumers during the transfer.
- Taxpayers will also benefit from a profit share agreement for up to four years, which will see them get a share of the profits the ringfenced business makes during this time.
- Since Bulb has been in Special Administration, the company did not hedge for the energy it has been supplying to its customers. The new business will start hedging for Bulb from day one and will ensure that the company is fully hedged by the end of March 2023.
- Until hedging is fully restored, the government will provide financial support to the new business to buy energy for Bulb customers over the course of winter 2022. This financial support will be repaid by the new entity in accordance with an agreed repayment plan schedule.
Press Contact
Octopus Energy
Christina Hess
T: +44 (0)20 45308369
E: christina.hess@octoenergy.com
About Octopus Energy Group
Octopus Energy Group is a global energy tech pioneer, launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. It is part of Octopus Group, which is a certified BCorp. With operations in 14 countries, Octopus Energy Group's mission is going global.
Octopus’s domestic energy arm already serves 3.4 million customers with cheaper greener power, through Octopus Energy, M&S Energy, Affect Energy, Ebico, London Power and Co-op Energy. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes. Octopus Energy Generation is one of Europe’s largest investors in renewable energy, managing a £5 billion portfolio of renewable energy assets throughout the continent.
All of these are made possible by Octopus’s tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to support over 28 million customer accounts worldwide, through deals with EDF Energy, Good Energy, E.ON energy and Origin Energy.
In December 2021, Octopus Energy Group was valued at approximately $5 billion following investments from Generation Investment Management and Canada Pensions Plan Investments Board. Both investors back businesses that drive sustainability, promote green energy and tackle climate change. It was the company’s third major investment round since launching to the market.
