The government is reportedly accelerating contingency plans for the collapse of energy supplier Bulb.
According to Sky News, ministers and officials, along with industry regulator Ofgem, believe that Bulb could collapse as soon as next week amid diminishing expectations of a rescue deal.
Sky cited industry sources as saying that talks with a small number of potential buyers were ongoing, but that others had pulled out in recent days. They said that while a solvent rescue remains a possibility, it was highly unlikely that Bulb could survive through November without new funding.
A spokesperson for Bulb told Sky: “Our discussions with multiple parties to secure additional funding continue to make good progress and we’re encouraged by the drop in wholesale energy prices.
“We expect the government to monitor wholesale prices and their effect on the whole industry, but ministers and Ofgem have been clear we must emerge from the energy crisis with a competitive and innovative market, rather than a return to the oligopoly of the past.”
It was understood that investment bank Lazard has been engaged in the search for new funding, while advisory firm AlixPartners has been working with Bulb on short-term measures to strengthen the balance sheet.
Bulb has around 1.7m household customers.
