Octopus Power reportedly closing in on takeover of Bulb | Power business

Octopus Power is reportedly closing in on a takeover of its rival Bulb in a deal that may set the ultimate invoice to the taxpayer at an estimated £4bn.

Ministers on the Treasury and the Division for Enterprise, Power and Industrial Technique (BEIS) have been knowledgeable {that a} sale of Bulb’s buyer base of 1.6 million can be probably the most beneficial consequence, in response to Sky Information.

Octopus Power is alleged to be hoping to agree on a deal for Bulb, which has been beneath public possession for nearly a 12 months after its collapse in November, by the tip of the month.

Trade sources reportedly mentioned the federal government and Teneo Monetary Advisory, Bulb’s particular administrator, had been on the point of signal an settlement to promote the corporate to Octopus by the tip of October.

The transaction, which Sky studies has the backing of Ofgem, the business regulator, would intention to be accomplished in December, an insider informed the broadcaster.

Octopus Power, which is run by Greg Jackson, has been reported to be pursuing a £1bn taxpayer bundle to safe a Bulb takeover. If the deal is accomplished, it might convey to an finish months of uncertainty surrounding Bulb, which is the UK’s seventh-biggest residential energy provider.

The federal government has needed to spend billions of kilos on fuel to provide Bulb prospects amid hovering wholesale fuel costs and Russia’s invasion of Ukraine.

Octopus and Ofgem each declined to remark, whereas Bulb didn’t instantly reply to the Guardian’s request for remark.

A authorities spokesperson mentioned: “The particular administrator of Bulb is required by legislation to maintain prices as little as doable. We proceed to interact intently with them to make sure most worth for cash for taxpayers.”

Final week, Bulb’s co-founder, Amit Gudka, informed the Guardian that he’s planning to increase Area Power, his loss-making battery storage firm, into Europe.

Gudka, who left Bulb in February 2021, mentioned the corporate had employed its first worker in Italy, the place it has began on the lookout for websites. “We’re figuring out websites,” he mentioned. “The expectation is that there’s going to be demand within the north – and numerous renewables are being constructed within the south – so a very good place for storage in fairly a protracted grid would be the centre of the nation.”