No Result
View All Result
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions
Smart Investment Today
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Smart Investment Today
No Result
View All Result
Home Investing

UK Government nets £1.5bn profit from Octopus-Bulb deal, closing the bailout chapter

by
October 24, 2024
in Investing
0
UK Government nets £1.5bn profit from Octopus-Bulb deal, closing the bailout chapter
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

The UK government has secured a £1.5 billion profit following Octopus Energy’s acquisition of the collapsed energy supplier Bulb, marking the conclusion of the Bulb bailout saga. Octopus Energy paid over £3 billion to the government, providing a significant financial boost amid pressing budget constraints.

The government intervened in November 2021 when Bulb went into administration. A year later, Bulb was sold to Octopus Energy in a landmark deal that has proven highly beneficial for both taxpayers and billpayers.

A deal that delivered for taxpayers

As part of the agreement, a wholesale arrangement was established to hedge the costs for Bulb’s customers, ensuring that energy prices during the transition period would not burden taxpayers or billpayers. Additionally, a profit-sharing mechanism was included in the deal until Octopus repaid the hedging funds in full.

On 30 September 2024, Octopus made its final payment, completing the deal without any loss to the public finances, a far better outcome than the initial £6.5 billion cost projections.

The government’s profit from the deal included £1.28 billion from the wholesale arrangement, benefiting from energy price declines, £19 million from the profit-sharing mechanism, and £200 million in interest. An additional £20 million is expected from the profit-sharing agreement.

No added cost to billpayers

Unlike many other corporate failures, this agreement did not impose additional costs on energy customers through higher standing charges. Octopus also guaranteed jobs for all Bulb employees, with 94% choosing to stay, and seamlessly transferred Bulb’s 1.5 million customers to its systems within six months.

Greg Jackson, founder of Octopus Energy, praised the outcome: “This outcome is a remarkable success story for taxpayers and billpayers. Octopus worked hard to find a fair deal which saved the Treasury billions compared to alternatives.”

Read more:
UK Government nets £1.5bn profit from Octopus-Bulb deal, closing the bailout chapter

Previous Post

Mike Ashley demands to take charge at Boohoo amid leadership crisis

Next Post

The Key Components of a Successful Account-Based Marketing Strategy

Next Post

The Key Components of a Successful Account-Based Marketing Strategy

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • Trending
    • Comments
    • Latest

    Gold Prices Rise as the Dollar Slowly Dies

    May 25, 2024

    Richard Murphy, The Bank of England, And MMT Confusion

    March 15, 2025

    We Can’t Fix International Organizations like the WTO. Abolish Them.

    March 15, 2025

    Free Markets Promote Peaceful Cooperation and Racial Harmony

    March 15, 2025
    Santander agrees £2.65bn deal to buy TSB from Sabadell

    Santander agrees £2.65bn deal to buy TSB from Sabadell

    0

    Ana-Maria Coaching Marks Milestone with New Book Release

    0

    The Consequences of California’s New Minimum Wage Law

    0

    Memorial Day

    0
    Santander agrees £2.65bn deal to buy TSB from Sabadell

    Santander agrees £2.65bn deal to buy TSB from Sabadell

    July 2, 2025
    UK takeover surge hits £74bn in first half of 2025, highest since 2021

    UK takeover surge hits £74bn in first half of 2025, highest since 2021

    July 2, 2025
    Superdrug adds over 600 jobs and boosts profits despite tax and wage pressures

    Superdrug adds over 600 jobs and boosts profits despite tax and wage pressures

    July 2, 2025

    Father from Sussex embarks on monumental charity challenge, paddleboarding across the English Channel in honor of his late daughter

    July 2, 2025

    Recent News

    Santander agrees £2.65bn deal to buy TSB from Sabadell

    Santander agrees £2.65bn deal to buy TSB from Sabadell

    July 2, 2025
    UK takeover surge hits £74bn in first half of 2025, highest since 2021

    UK takeover surge hits £74bn in first half of 2025, highest since 2021

    July 2, 2025
    Superdrug adds over 600 jobs and boosts profits despite tax and wage pressures

    Superdrug adds over 600 jobs and boosts profits despite tax and wage pressures

    July 2, 2025

    Father from Sussex embarks on monumental charity challenge, paddleboarding across the English Channel in honor of his late daughter

    July 2, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved

    No Result
    View All Result
    • News
    • Economy
    • Editor’s Pick
    • Investing
    • Stock

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved