Joining many of its counterparts due to rising energy costs, Bulb Energy has gone into administration. As the seventh largest energy company in the UK, the green energy company’s decline has been the latest, and largest, in a line of struggling energy companies. And, with 1.7 million customers, its closure sends many households across the UK into disarray once again when it comes to their energy provider. So, if you’re a Bulb customer what should you do? We’re here to answer your Bulb Energy questions and hopefully put your mind at ease.
What will happen to Bulb Energy?
Bulb joins 22 energy companies that have gone bust in 2021. However, unlike their predecessors, Bulb will live on under special administration.
As the supplier has so many customers, other providers cannot take them on meaning the brand requires special administration.
What does special administration mean for Bulb customers?
Put simply, a special administrator will be allocated to run Bulb. However, your energy will still be supplied by Bulb and any queries dealt with by Bulb customer support. These administrative measures mean customers (and Bulb’s investor’s) are protected. It also means that the government, using taxpayer’s money, could prop up Bulb energy in the short term.
What will happen to Bulb, and its customers, in the long term?
In the longer term, administrators may either sell or rescue Bulb, whichever recoups the most cash. Importantly, in either case, customers and their credit would be protected, and your energy kept switched on and on the price cap.
What do I need to do as a Bulb customer?
NOTHING. While administration can be a scary for customers, your best bet financially is to do nothing. Your energy will still be supplied by Bulb, albeit under new management, and your credit will be protected or honoured. Likewise, it is not beneficial to switch as no other supplier can provide lower prices due to soaring energy costs. Under no circumstances will your energy be cut off due to the Bulb crisis. Therefore, keep paying your direct debits as normal and you will of course be notified of any future changes.
What does this mean for the energy industry and my bills?
The seventh largest energy company going into administration has certainly rocked the energy industry at an already turbulent time. While no one can predict the future, this is unfortunately not the end of uncertainty and rising energy bills.
With bills already rising by 40% in recent months, consumers are likely to feel the brunt of rising energy costs over the winter months with further potential increases to the price cap in the spring.
While there is little consumers can do to avoid rising energy bills there are some things you can do if you cannot afford higher bills, such as the Warm Home Discount and contacting your supplier. You can read more on how to tackle soaring energy bills here. Alternatively, if you are struggling with rising energy costs and are worried about falling into debt, use our FREE online debt advice tool to see how we can get you back on track.