Taxpayers will have to spend billions more to rescue the bulb energy government

Keeping Bulb Energy on could potentially cost taxpayers billions of pounds more than is currently being determined, government officials say.

The bulb, which has 1.6 million subscribers, was semi-nationalized in late November when it was placed under special administration because it was pushed down by rising wholesale gas prices.

In November, the wholesale price was about £ 2 per unit.

Since then, prices have consistently been higher than that.

They peaked at £ 4.70 in December and peaked at £ 8 on Monday – a time of extreme turmoil – 20 times the price seen last year.

When the bulbs were placed in special administration, the Treasury set aside £ 1.7 billion to purchase the required gas until the end of the tax year in April 2022, a time when a buyer was expected to be found for the business.

Government officials acknowledge that in this environment the possibility of offloading the business to a private buyer seems remote and that this means that taxpayers will be hooked on gas bills that energy analysts believe could be billions of pounds.

A spokesman for the Department for Business, Energy and Industrial Strategy said: “The Special Administrator of Bulbs is obliged to keep administrative costs as low as possible, and we will work closely with them to ensure maximum value for money. Taxpayers. “

Extreme volatility in the energy market has seen some consumers willing to pay £ 3,500 a year to fix their energy bills for two years, according to another major energy operator.

This is well above the মূল 1,971 energy price cap that went into effect in April, but that cap could rise further every six months.

Industry analysts estimate that the next energy price cap from October could be set at £ 3,000 or more.

Other energy retailers are reluctant to offer or recommend customers to lock in at such a high price because they fear they may fall into the trap of higher tariffs if prices return to a more normal level.

Some may be willing to pay a high price for the peace of mind given to them. Despite the government’s two-tiered বিল 9bn energy bill support package, millions of consumers will be unable to afford energy bills later this year.

It will offer consumers a £ 150 council tax rebate in April and a 200 200 loan in October that will be repaid at £ 40 a year for the next five years.


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