More than 1.5m customers of failed energy supplier Bulb are set to be transferred to Octopus Energy, but what does this mean for those affected?
Bulb Energy, the seventh largest energy supplier in the UK, collapsed at the end of last year. Rather than it shutting down and an alternative supplier taking on its customers, Bulb became the first energy supplier to enter “special administration” and be run by the government through Ofgem.
This happened because Ofgem was unable to find “a supplier of last resort” willing to take on so many new customers at once. It was the first time this course of action had been taken since these regulations were written into law a decade ago.
Here, we explain what Octopus Energy’s takeover of Bulb means for Bulb customers, and also for its own customers.
I’m a Bulb customer - what happens next?
Octopus Energy’s takeover of Bulb is currently awaiting final regulatory approval, which is expected to happen at the end of this month.
Bulb customers don’t need to do anything as Octopus will contact you prior to you being transferred across to them. In the meantime, if you have any queries, get in touch with Bulb’s customer service team as you would normally, as they will still be responsible for resolving any issues until you’ve been transferred.
Rocio Concha, director of policy and advocacy at consumer association Which? Said: “Bulb customers will understandably be anxious to work out what moving to a new company means for them, however there is no need to panic. Your gas and electricity won’t be cut off and your credit will be protected. It usually take a few weeks for customers to be transferred and your new supplier will get in touch to tell you about your new tariff, how payments will work and whether you’ll get any credit back.
“As you wait to hear more, take a meter reading so your account is up to date, make a note of any credit you’ve built up and don’t switch suppliers – this can make it trickier to transfer you and pay back any money you’re owed.”
If you’re considering switching your energy provider, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison websites such as MoneySuperMarket, Uswitch and Compare the Market enable you to compare the latest energy tariffs, whether you’re looking for a fixed or variable deal.
So I won’t lose any credit I’ve built up with Bulb?
No, you won’t – any credit balance you have is safe and once your new account with Octopus is set up, it will be transferred automatically across by Bulb.
The amount you pay won’t change either, and you don’t need to cancel your direct debit with Bulb and set up a new one with Octopus, as this will be transferred over too. A Bulb spokesman said: “Domestic prices will still be protected by the government’s Energy Price Guarantee, and Ofgem’s energy price cap. Business prices will continue to be protected by the government’s Energy Bill Relief Scheme.”
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Will I still be able to get the Warm Home Discount?
The Warm Home Discount is a payment from Bulb of £150, to put towards your electricity bills. It’s available to Bulb members on a low income, who get government benefits and extra support. Bulb has confirmed it will continue to make Warm Home Discount payments to eligible members.
You don’t need to register your interest or apply for the Warm Home Discount. The Department for Work and Pensions (DWP) will confirm if you’re eligible based on the information they have about the benefits you receive, and it will automatically be applied to your account by 31 March 2023. Find out more about the Warm Home Discount and other support you might be eligible for in our guide Are you eligible for help with heating costs?
What about the £400 help every household gets with heating bills?
You’ll still get this as usual, with the £66 payment in November and and the £67 payments in December, January, February and March all being made in the first 10 working days of each month. Many prepayment meter customers of all energy suppliers have yet to claim their money. You can read more about this in our article Are you missing out on £400 help with energy bills?
I’m an Octopus customer, what will the takeover mean for me?
There shouldn’t be any impact on you if you’re an existing customer, and according to Octopus Energy, taking on Bulb customers shouldn’t affect their customer service in any way.
A spokesman for Octopus Energy said: “We’re really excited to welcome Bulb members to our family and don’t expect this to have any negative impact on Octopus customers. We’re also taking on board Bulb’s team and for now, Octopus staff will continue to look after Octopus customers and the Bulb team will look after Bulb customers. We’re one of the UK’s most experienced suppliers for major customer migrations like this.”