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Energy provider to 1.7m customers seeks new funding amid gas price pressures

·1-min read
Bulb Energy is reportedly looking for a bailout (Nick Ansell/PA) (PA Archive)
Bulb Energy is reportedly looking for a bailout (Nick Ansell/PA) (PA Archive)

An energy provider to 1.7 million customers in the UK is seeking a bailout amid pressure on an industry facing surging gas wholesale prices.

The Financial Times first reported on Sunday that Bulb was working with financial advisory firm Lazard to help secure new sources of funding.

The newspaper claimed options being explored include raising funds from investors or a potential joint venture or merger with another company.

A Bulb spokesperson said: “From time to time we explore various opportunities to fund our business plans and further our mission to lower bills and lower CO2.

“Like everyone in the industry, we’re monitoring wholesale prices and their impact on our business.”

It comes after four small energy companies folded amid the surge in gas prices, with wholesale costs up 250% since January.

Business Secretary Kwasi Kwarteng is due to hold further talks with the energy industry and consumer groups on Monday.

Mr Kwarteng has said he is “confident” that the security of energy supplies can be maintained.

The rise in gas prices has been attributed to a range of factors, including a cold winter which left stocks depleted, high demand for liquefied natural gas from Asia and a reduction in supplies from Russia.

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