UK nationalizes faltering energy company

Photo: ANP

The UK will nationalize the energy company Bulb Energy. The company is on the verge of collapse due to high energy prices. Bulb is already the 21st British energy company to go bankrupt 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 smaller energy suppliers lure customers with low rates and lose a lot of money on fixed contracts as the energy they have to buy becomes more expensive. In addition, the maximum rate for energy applies in the UK, which means that companies are currently also at a loss due to variable contracts.

For Bulb, the government wants the judges to immediately appoint a special committee. As a result, the company’s customers can remain as usual for a while and the treasury will pay additional fees. Experts hope that in the long term these costs will be collected from the energy sector. And they will probably pass it on to British households.

Problems at Bulb Energy have forced more than 2 million UK households to switch energy suppliers. They were shifted to other companies by regulators, as has happened several times in the Netherlands recently. Bulb’s nationalization came after larger British energy companies indicated they couldn’t just take in more customers without getting into trouble themselves.

Shaun Dennis

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