Octopus Energy has reportedly asked the UK government for £1bn to support its takeover of Bulb’s 1.6mln customer base following its collapse in November.
The £1bn taxpayer funding package is being requested by what is now the UK’s sixth largest energy supplier after Bulb's collapsed due to failed to hedging which left the energy re-seller exposed to surging wholesale prices as the energy amidst the outbreak of the Ukraine war.
A potential deal would see Octopus dish out between £100mln and £200mln, while the government would likely pay £3bn in total as a result of the company’s failure.
The government would receive a significant profit-share agreement, giving it a return for many years on earnings from Bulb customers, Sky News reported.
If Octopus were to be successful with the takeover, it would take its British customer base to some 5mln households.
"Octopus will continue to do all we can to help customers through the energy crisis, whilst investing in better solutions to make sure it never happens again," Greg Jackson, chief executive, said.