The UK’s seventh largest energy supplier is on the Brink of collapse within days and has around 1,7m customers and will affect around 1,000 jobs, according to Sky News.
The government and the industry watchdog Ofgem are ramping up plans to try and prevent the collapse.
According to energy sources the imminent administration process and the ongoing talks with Sequoia Economic Infrastructure Income Fund currently has an outstanding loan of around £50m, it has been reported.
The source added that Sequoia are demanding the repayment of the loan before the energy supplier goes insolvent.
Rescue talks have faded and the Business Secretary Kwasi Kwarteng has rejected demands for a government bailout fund and the removal of the industry price cap.
According to Sky News, Bulb is expected to appoint insolvency practitioners and if the company were to become insolvent, it would mean the initiation of the Special Administration Regime (SAR).
At the start of the month a government spokesman said, “Ofgem as the expert regulator is monitoring the situation across the energy market for the continued impacts on high worldwide wholesale gas prices.
“We have put in place the powers and robust processes to ensure customers do not experience any disruption to their energy supply and that costs are minimised if a supplier should exit the market.”
In October Ofgem said, “There has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers.
“We know this is a worrying time for many people and our number one priority is protecting customers.
“In the event a supplier fails, Ofgem and government have robust processes in place to ensure customers’ electricity and gas supply continue and domestic customers’ credit balances are protected.”