Major supplier of electricity collapsed in the UK

The British firm Bulb, one of the seven largest energy companies in the United Kingdom, has gone bankrupt and got under external control.  The financial collapse was caused by gas prices, which were established in the fall of 2021.

The company's share of electricity suppliers in the UK was about 6%.  Experts note that over the past three months, 25 electricity suppliers in the country have already filed for bankruptcy.  Several million citizens were their clients.  At the same time, the country's authorities are in a state of expectation of new bankruptcies.

A few days ago, a message that the introduction of a special management regime would allow the company to protect its customers by continuing to serve them, appeared on the company's official website.

The main factor of collapse of the company was called the extraordinary rise in prices, the reduced volume of gas exported from Russia and the increased demand, which led to the unpredictability of the situation and volatile prices.

The press service of the company noted that the repeated rise in prices was associated with the certification of Nord Stream 2 AG, which is to serve Nord Stream 2, suspended in Germany on November 16.

Earlier, representatives of the British energy sector reported that Bulb was negotiating with potential investors.  However, the company did not manage to complete the restructuring.  As noted in the official statement, investors were forced to calculate all the risks, which caused their concern in the current situation.  In addition, the country has a price cap.  This forces the company to incur losses in the supply of electricity to end users.

British officials managing the gas and electricity markets have raised the ‘price ceiling’ for consumers since October 1, but this has not helped to improve the situation.

The energy sector is heading towards the expected bankruptcy, while the relevant minister Kwasi Kwarteng told the media that the government was not going to provide them with financial assistance from the national budget.  At the same time, a number of large firms stated that they were ready for the possible development of the situation and would be able to overcome it.