The UK will nationalize the energy company Bulb Energy. That company is on the verge of collapse due to rising energy prices. Bulb is already the 21st British energy company to enter since August, but with 1.7 million customers it is also the largest to date.
Rising energy prices have caused major problems in the UK energy sector. Many small energy suppliers attracted customers at lower prices and lost a lot of money on fixed contracts as the energy they had to buy became more expensive. In addition, a cap rate cap is applied in the UK, which means that companies are currently losing money as well on variable contracts.
For Polp, the government wants the judge to quickly appoint a special director. As a result, the company’s clients can go on as normal for the time being and the treasury will pay the additional costs. Experts predict that in the long run these costs will be collected from the energy sector. They are likely to pass it on to British families.
Problems at Bulb Energy have forced more than two million British households to switch energy suppliers. They were transferred to other companies by the regulator, just as it happened several times in the Netherlands recently. Bulb’s nationalization comes after Britain’s largest energy companies indicated they could not acquire more customers without getting into trouble themselves.