The National Audit Office (NAO) is to examine Octopus Energy’s takeover of Bulb after the collapsed energy supplier was bought out of a state-handled administration, according to a report in the Guardian.
The report said that the NAO's comptroller and auditor general, Gareth Davies, has commissioned work to scrutinise the deal.
The NAO, which is an independent parliamentary body, undertakes investigations into areas of government spending and publishes reports to increase transparency.
It is understood the watchdog is in the early stages of its work and an update detailing the scope of the investigation will be published once approved by Davies, the Guardian said.
The move comes amid calls for greater transparency around the terms of the deal, which was agreed late last month, and a court hearing to confirm the acquisition is to take place on Friday.
Neither Octopus nor the government have confirmed the price paid for Bulb, how long Octopus has been given to repay the costs of the government buying energy for Bulb customers this winter, or details of a “profit share” agreement.
A price of £100m to £200m has been reported but has not been formally confirmed.
Octopus’s chief executive, Greg Jackson, said last week it was a “fair deal” for taxpayers who needed to see the “upside” of emergency government bailout deals.
The energy company said it had paid “above market value” to acquire Bulb’s 1.5 million customers.
The Department for Business, Energy and Industrial Strategy (BEIS) refused to confirm the size of Bulb customers’ credit balances in response to a freedom of information request by the Guardian, citing a “commercial interest exemption.”
Estimates of the ultimate cost of bailing out Bulb have varied wildly from £1.2bn to £4bn due to the unpredictable wholesale gas market.