Utilities lose High Court case over government’s role in sale of collapsed Bulb company

Utilities have lost a High Court challenge over the government’s handling of the sale of collapsed Bulb.

Scottish Power, British Gas and EON have alleged an “unfair sale process” of competitor Octopus Energy.

3

But judges yesterday dismissed the challenge, saying: “The Octopus transaction was the only offer to emerge from a lengthy merger and acquisition process that was open, transparent and competitive.”

British Gas owner Centrica said it would now “assess our options”, adding: “We believe the government bailouts will weigh heavily on UK taxpayers.”

But Octopus accused its competitors of filing the case in “a desperate attempt to defend their dwindling market positions against a more efficient competitor.”

Bulb was placed under special administration in November 2021 following financial problems following a sharp rise in wholesale gas prices.

Last October, Octopus announced a government-backed deal to buy Bulb and take over its 1.6 million customers.

Ministers had offered Octopus £4.5bn to fund the takeover – but falling wholesale energy prices now brought the bailout cost to almost £246m.

Octopus said: “The High Court’s findings are clear: we paid a fair price for Bulb in an open and competitive process.”

GOOD WEEK

3

ALDI boss Giles Hurley was named grocer of the year – as Aldi overtook Morrisons as the fourth largest supermarket chain.

BAD WEEK

3

SIR Richard Branson paid off 85 per cent of Virgin Orbit employees after failing to secure new investment.

LECCY BAR BILL

BARS and restaurants face a £7.3billion rise in energy bills after government aid was cut today.

According to UK Hospitality, utility bills now account for 11.4 per cent of business turnover, up from 3.4 per cent before the crisis.

Its boss Kate Nicholls said: “The energy crisis has suffocated companies in the past year.”

HOME PAGE

House prices have fallen 3.1 percent over the past 12 months.

According to Nationwide, this is the biggest annual drop since July 2009, after prices fell for the seventh straight month — 0.8% in March alone.

Chief Economist Robert Gardner said: “It will be difficult for the market to bounce back strongly.”