Cost of bailing out collapsed energy supplier Bulb soars to £6.5bn

The eye-watering cost of bailing out collapsed energy supplier Bulb has hit £6.5billion.

A document released alongside the Autumn Statement shows Bulb’s taxpayer bail-out is now three times an earlier forecast of £2.2billion.

The £6.5billion figure means the rescue will cost each British household £230, piling more pain on those struggling with spiralling energy bills. Bulb has been in ‘special administration’ since its failure last year.

It was effectively nationalised and has cost billions to keep running. Uncertainty seemingly ended last month when Octopus Energy agreed to take on its 1.5m customers in a Government-approved deal.

That has not been completed after rivals challenged the lack of transparency around the process. 

It has been revealed taxpayers will remain on the hook after an agreement to cover Bulb’s fuel costs over the winter.

Octopus chief Greg Jackson said it would be a ‘stable home’ for Bulb customers and that it was a ‘fair deal’ for taxpayers.

Andy King, at the Office for Budget Responsibility, said costs rose because Bulb was in the Government’s hands for longer than expected.