Octopus Energy will repay the Government £3bn ahead of schedule following the taxpayer bailout of failed supplier Bulb.
The London-based company has already repaid hundreds of millions of the amount owed and the balance is expected to be settled by the end of September.
Bulb was bailed out in November 2021 after skyrocketing wholesale gas and power prices prevented it from purchasing power for its 1.5 million customers. It was the largest energy supplier to go bankrupt during the crisis.
Octopus took Bulb out of administration in October 2022, in a move that helped it become the UK’s largest electricity supplier to almost 7 million homes.
At one point, the Office for Budget Responsibility had estimated the bailout would cost £6.5bn, the most expensive since the financial crisis. However, falling energy prices have reduced the final price to £3.02 billion.
On the way: Octopus has already repaid hundreds of millions of the amount owed and the balance is expected to be settled by the end of September.
Octopus Energy founder Greg Jackson said: ‘This result is a great result for ratepayers.
‘Octopus worked hard during the energy crisis to create a fair deal. Although Bulb went bankrupt with billions in liabilities, it has cost the Government almost nothing.
The bailout was a test for the UK’s special administration regime. It comes as the Government draws up contingency plans in case debt-ridden Thames Water collapses.
The rebate from Octopus represents a recovery of approximately 99 per cent more of the amounts owned by HMG,” permanent secretary for energy security and net zero emissions, Jeremy Pocklington, said in May.
