Monday 24 October 2022 19:03
Scottish Power has condemned the government’s handling of Bulb Energy (Bulb) sales, accusing them of distorting competition in the energy sector.
The energy company’s head, Keith Anderson, wrote to Business Minister Jacob-Rees Mogg calling for the cancellation of the Bulb auction and restarting, Sky News reported.
In a letter to Rees-Mogg, Anderson told Rees-Mogg that the proposed deal with Octopus Energy (Octopus) could be “distorting competition” and “not in the public interest”.
Octopus has closed in on a deal for Bulb, with the government accepting the terms of the proposed revolution.
City A.M. It is understood to include a lump sum of £100 million plus a profit-sharing agreement. in exchange for £1 billion in public funds for hedging support. which will pay back over time
Anderson believes that this financing “Unfair” as “no other supplier in the UK has access to such government funding.”
He said: “In the current situation we believe other suppliers are willing to buy Bulb for substantially smaller levels of government support.”
He cautioned that any funding given to Octopus Energy would give it a “commercial advantage compared to other energy suppliers in the UK”.
“This tends to distort competition in the energy supply market,” he concluded.
last week Bulb’s sales process has changed dramatically with Ovo Energy (Ovo), taking its de facto neutral supplier eleven hours.
The proposed deal does not include hedging support, Sky News reports.
Anderson did not disclose Scottish Power’s interest in acquiring Bulb’s 1.6 million customer base in its entirety.
However, the administrator previously considered separating the customer from Bulb and forwarding it to multiple suppliers. This could attract bids from across the sector.
He also argued that “Unfair Process” in Light Bulb Auction It said the original deadline for the auction was set before the government decided to intervene in the market with support for households and packaging.
Scottish Power and the government have been contacted for comment.