Recommendations & Conclusions
5 items
5
Conclusion
Seventy-Fourth Report - Bulb Energy
Acknowledged
The complex nature of the Special Administration Regime and sale process has required specialist skills and advice that are in limited supply within government. During the SAR and sale process for Bulb, government sought and appointed various advisers to support the Bulb process and also to advise on matters such …
Government response. The government agrees with the recommendation, outlining that the GCFP continuously evaluates its purpose and will include raising awareness of specialist skills in its forward plan, as well as continuing to monitor and update knowledge-sharing tools and arranging seminars.
HM Treasury
7
Conclusion
Seventy-Fourth Report - Bulb Energy
Acknowledged
The SAR will continue until Octopus has repaid the taxpayer funding and Bulb’s outstanding costs and liabilities have been settled. We asked the Department how it was managing the recovery of the temporary taxpayer funding provided to Octopus. The Department and HM Treasury told us that the deal constructed with …
Government response. The government agrees with the implied need for ongoing management and monitoring of the Bulb SAR. It states that lessons learned activities are ongoing and will continue throughout the SAR lifecycle, and the department will conduct a benefits analysis towards …
HM Treasury
8
Conclusion
Seventy-Fourth Report - Bulb Energy
Acknowledged
The NAO reported that the estimated amount Octopus was expected to pay back was £2.96 billion, based on the wholesale cost allowance in Ofgem’s price cap methodology. This included the one-off payment of £1.06 billion made by BEIS on 20 December, and the £0.71 billion estimated wholesale costs of energy …
Government response. The government acknowledges the estimated repayment of £2.8 billion by Octopus, expected by September 2024 with a potential deferral to September 2025. It further states that it does not expect full recovery and intends to recover any shortfall from energy …
HM Treasury
10
Conclusion
Seventy-Fourth Report - Bulb Energy
Acknowledged
The total cost of the taxpayer funding committed to the sale and supporting Bulb was made up of a number of areas of spend. These included: £0.16 billion to offset Bulb’s remaining liabilities; a one-off loan of £1.06 billion to assist with building the collateral needed to provide the letter …
Government response. The government agrees with the conclusion, confirming that the actual cost of the SAR will be known only after its conclusion, expected in autumn 2025 or 2026. It commits to informing the Committee of final confirmed amounts and providing a …
HM Treasury
11
Conclusion
Seventy-Fourth Report - Bulb Energy
Acknowledged
When we examined the regulation of energy suppliers in November 2022, we found that the SoLR intervention was expected to cost £2.7 billion. This cost was expected to be passed onto energy consumers and resulted in an increase in average bills by £94 per household.16 We therefore asked the Department …
Government response. The government agrees with the conclusion, confirming the SAR's expected conclusion in autumn 2025 or 2026 when final costs will be known, including any shortfall. It commits to providing the Committee with a written update on final confirmed amounts and …
HM Treasury