British Gas owner Centrica PLC (LSE:CNA) has reportedly withdrawn an offer to buy the customer list of Bulb, which went into taxpayer-funded administration last year.
Centrica was believed to have made an offer for the company’s customer list, which excluded its brand, offices and staff.
The Financial Times reported that the exit leaves just two bidders in the running to acquire the bust energy company, which was forced into administration after wholesale gas prices surged last year.
Octopus Energy made a last-minute bid for the company after the April deadline, while Abu Dhabi-based energy company Masdar was also reported to be bidding for Bulb's assets.
They were the only bidders to put firm offers forward to Lazard, which is reportedly running the sale process, out of at least six companies that had expressed their interest to submit non-binding bids.
On its website, renewable power supplier Octopus said it has received 16 times more investment than Bulb, the UK’s biggest failing energy company.
A National Audit Office report this month suggested that soaring wholesale gas prices, which rose six-fold between February and December 2021, had forced Bulb out of the market.
The government attempted to rescue the failing energy company’s 1.7 million stranded customers as part of the biggest energy bailout since the recent energy crisis.
According to the National Audit Office, the government spent £900mln on an administrator and expects to spend £1bn to run Bulb's operations until next year.
Ofgem said at the time that the appointment of an administrator would “ensure Bulb customers see no disruption to their supply, their price plan will remain the same and any outstanding credit balances will be honoured”.
Bulb's founder and chief executive, Hayden Wood, was still receiving a £250,000 a year salary when questioned by ministers in April, which Labour politician Andy McDonald asked whether was "morally justifiable".
Wood told Parliament he was kept on by the company to support customers and help the government’s attempt to sell the business.
Citigroup said in an analyst note today that it recommends Centrica shares as a Buy after it was readmitted to the FTSE 100 at the last quarterly reshuffle.
Centrica's shares rose 1.83% in early trades this morning.