Energy suppliers lose High Court challenge over Government’s role in sale of collapsed firm Bulb
ENERGY suppliers have lost a High Court challenge over the Government’s handling of the sale of collapsed firm Bulb.
Scottish Power, British Gas and EON claimed an “unfair sale process” by rival Octopus Energy.
But judges yesterday rejected the challenge, saying: “The Octopus transaction was the only bid to emerge from a lengthy mergers and acquisitions process which was open, transparent and competitive.”
British Gas owner Centrica said it would now “consider our options”, adding: “We think state bailouts put a burden on the UK taxpayer.”
But Octopus accused its rivals of mounting the case in “a desperate attempt to defend their waning market positions against a more efficient rival”.
Bulb was placed into special administration in November 2021 after financial problems following a sharp rise in wholesale gas prices.
In October last year, Octopus announced a deal to buy Bulb and take on its 1.6 million customers, backed by the Government.
Ministers had offered Octopus £4.5billion to help fund the takeover — but falling wholesale energy prices now put the bailout cost nearer £246million.
Octopus said: “The High Court’s findings are clear: we paid a fair price for Bulb in an open and competitive process.”
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LECCY BAR BILL
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