A deal between Octopus Energy and the government for failed provider Bulb is facing further delays as rival firms seek more time to scrutinise the deal
Centrica owned British Gas, ScottishPower and E.ON have all raised complaints and opened a legal review of the deal, potentially delaying the handover date.
British Gas lawyer Paul Harris suggested the deal was “a mess worth billions,” during a court hearing on Tuesday, where the three firms argued more time was needed to scrutinise the deal.
In turn, the court gave the companies until Thursday to propose a timescale needed to sufficiently review the discussions between Octopus and the government.
In response, lawyers representing Octopus suggested Bulb’s takeover had to be completed by New Years Eve, with its wholesale supply arrangements uncertain for the new year resulting in the firm being “unable to ensure continuity of supplies for customers”.
The three firms suggested a lack of transparency over negotiations last week and argued the availability of government support had not been made clear during the bidding window for Bulb.
Having failed last year, Bulb was put into government handled administration, costing the taxpayer an estimated £6.5bn so far.
A deal was agreed in October with lone-bidder Octopus for embattled suppliers’ 1.6mln customer base.
Upon completing the deal, Octopus would become the UK’s third largest energy supplier, behind British Gas and E.ON.
Harris added: “If the claimants had been told subsidies were on offer, that would fundamentally change the landscape in what they were participating in the bidding process,” referencing government financial support for Bulb agreed within the deal.