Octopus Energy has announced that it has bought out the collapsed energy firm Bulb, taking on their 1.5 million customers.

Bulb was placed into special administration in November 2021 and has been run with billions of pounds of Government support since then.

In a statement Octopus Energy said through the deal it was "bringing an end to taxpayer losses and uncertainty for Bulb customers and employees" and that it was paying the Government “above market value”.

The Department for Business, Energy & Industrial Strategy (BEIS) said the deal would be completed after a statutory process called an energy transfer scheme, which will move Bulb’s relevant assets into a new separate entity that will “protect consumers during the transfer process”.

York Press: Bulb was placed into special administration last year (PA)Bulb was placed into special administration last year (PA) (Image: PA)

Greg Jackson, chief executive and founder of Octopus Energy Group, said: “We take our responsibilities very seriously. We will work unbelievably hard to deliver value for taxpayers and to look after Bulb’s staff and customers.”

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Grant Shapps, who is the current Secretary of State for the BEIS, said: “This Government’s overriding priority is to protect consumers and today’s sale will bring vital reassurance and energy security to consumers across the country at a time when they need it most.

“This is a fresh start and means Bulb’s 1.5 million customers can rest easy, knowing they have a new energy home in Octopus.”

Commenting on the deal, Richard Neudegg, director of regulation at price comparison service Uswitch.com, said it was good that Bulb customers were out of "limbo" after a year of uncertainty.

He added: “The most important thing for Bulb customers to know is that their energy supply will continue as normal, and any credit balances will be protected. 

“The best advice for customers in this situation is to wait to hear from Bulb about what happens next. Your bills will still be covered by the Government’s Energy Price Guarantee until next April. 

“Customers shouldn’t expect any immediate changes to systems or contacts for a few months, but it’s likely customers will move over to Octopus’s systems in due course.