Bulb Energy
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Bulb (Bulb Energy Ltd) was a UK energy supplier founded in 2013 by Amit Gudka and Hayden Wood. Backed by DST Global and Magnetar Capital, it sold electricity and gas claimed to be from renewable or offset sources, growing fast on low prices to about 1.7 million customers - roughly 5-6% of the UK market, the seventh largest supplier - while running at a financial loss. After wholesale gas prices surged, it was placed into special administration on 24 November 2021, the first UK energy company to enter the regime. Octopus Energy announced it would acquire Bulb's 1.5 million customers and 650 staff in October 2022, and completed the acquisition on 21 December 2022.
02 / Bulb Energy FAILURE REASONS
Failure reasons
Bulb collapsed when wholesale natural gas prices surged above the price cap set by regulator Ofgem, forcing suppliers to sell energy at a loss. Bulb sought a bailout in September 2021 after investors refused to provide further funding, and Ofgem placed it into special administration on 24 November 2021 - it was too large for the usual supplier-of-last-resort transfer. The temporary nationalisation cost taxpayers over £1.6 billion in support (Octopus later agreed to repay nearly £3 billion, leaving the government about £6 million short), and Bulb was carrying billions in liabilities.
03 / EVENT HISTORY
Events in the structured record
- Founded in London
Amit Gudka and Hayden Wood founded Bulb Energy Ltd, selling renewable-sourced electricity and gas.
- Collapse into special administration
After wholesale gas prices surged above Ofgem's price cap and investors refused further funding, Bulb sought a bailout in September and was placed into special administration on 24 November 2021 - the first UK energy company to enter the regime. FY2020 net income was a £63 million loss.
- Acquired by Octopus Energy
In October 2022 Octopus Energy announced it would acquire Bulb's 1.5 million customers and 650 staff; the acquisition completed on 21 December 2022, with Octopus agreeing to repay nearly £3 billion of taxpayer support.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
Bulb was founded in 2013 in London by Amit Gudka and Hayden Wood, selling electricity and gas claimed to be from renewable or offset sources.
- 02
Backed by DST Global and Magnetar Capital, it grew to about 1.7 million customers (5-6% of the UK market) while running at a financial loss; FY2020 net income was a £63 million loss (about $81 million at the 2020 average rate of 1.28).
- 03
Wholesale gas prices surged above Ofgem's price cap, forcing suppliers to sell at a loss; Bulb sought a bailout in September 2021 after investors refused further funding.
- 04
On 24 November 2021 Ofgem placed Bulb into special administration - too large for a supplier-of-last-resort transfer, the first UK energy company to enter the regime.
- 05
In October 2022 Octopus Energy announced it would acquire Bulb's 1.5 million customers and 650 staff; the acquisition completed on 21 December 2022.
- 06
The government provided over £1.6 billion in temporary support; Octopus agreed to repay nearly £3 billion, leaving the public purse about £6 million short of recovering the costs.
- 07
Bulb Energy Ltd reported FY2020 net income of -£63 million (subject: Bulb Energy Ltd; period: FY2020; basis: reported net income).