- London-based company has already repaid hundreds of millions
Octopus Energy will repay the Government £3billion ahead of schedule following the taxpayer bailout of failed supplier Bulb.
The London-based company has already repaid hundreds of millions of the amount owed, with the balance expected to be settled by the end of September.
Bulb was bailed out in November 2021 after soaring wholesale gas and energy prices left it unable to buy energy for its 1.5million customers. It was the largest energy supplier to fail during the crisis.
On track: Octopus has already repaid hundreds of millions of the amount owed, with the balance expected to be settled by the end of September
Octopus bought Bulb out of administration in October 2022, in a move that helped it to become the UK’s largest electricity provider to nearly 7m homes.
At one point, the Office for Budget Responsibility had estimated that the bailout would cost £6.5billion – the most expensive since the financial crisis. However, falling energy prices have slashed the final price to £3.02billion.
Octopus Energy founder Greg Jackson said: ‘This outcome is a great result for taxpayers.
‘Octopus worked hard in the energy crisis to create a fair deal. Although Bulb went bust with billions of liabilities, it has cost the Government almost nothing.’
The bailout was a test of the UK’s special administration regime. It comes as the Government draws up contingency plans in case debt-laden Thames Water collapses.
Octopus’ repayment represents an approximately 99 per cent plus recovery of amounts owned to HMG,’ energy security and net zero permanent secretary Jeremy Pocklington said in May.