London Daily

Focus on the big picture.
Thursday, Oct 23, 2025

Scottish Power chief slams government's handling of 'unfair' Bulb sale

Scottish Power chief slams government's handling of 'unfair' Bulb sale

Jacob Rees-Mogg, the business secretary, has been warned that the sale of the collapsed supplier Bulb "is likely to distort competition in the market for energy supply".

Scottish Power has launched a broadside against ministers' handling of the sale of Bulb, the nationalised utility, accusing them of "distort[ing] competition" in the energy retail sector.

Sky News has obtained a letter sent by Keith Anderson, chief executive of the Spanish-owned supplier, to Jacob Rees-Mogg, the business secretary, which effectively calls for the auction of Bulb to be scrapped and restarted.

Mr Anderson's demand has emerged days after Sky News revealed that rival Ovo Energy was trying to gatecrash the Bulb sale, which had looked likely to conclude with a takeover by Octopus Energy in the coming weeks.

Industry sources said on Monday that both Ovo and Scottish Power were concerned that Octopus Energy would benefit from £1bn of temporary taxpayer funding.

In his letter to Mr Rees-Mogg, Mr Anderson wrote that that financing was "unfair" because "no other supplier in the UK has access to such government funding and… in the current circumstances we believe other suppliers would be willing to acquire Bulb for a materially smaller level of government support".

Mr Anderson did not explicitly say that Scottish Power would be interested in acquiring Bulb's 1.6m-strong customer base in its entirety, although energy executives believe it would be keen to take on a significant chunk of Bulb's customers.

He said in his letter that any funding provided to Octopus Energy would place it "at a commercial advantage compared with other UK energy suppliers".

"This in turn is likely to distort competition in the market for energy supply," he added.

"This is unfair to other energy suppliers such as Scottish Power and is not in the public interest."

'Procedural unfairness'


Mr Anderson also alleged "procedural unfairness" in the Bulb auction, saying that the original deadline for bids had been set prior to the government's decision to intervene in the market through schemes such as the multibillion-pound Energy Price Guarantee and the Energy Bill Support Scheme.

"Furthermore, at the time bids were invited there was no government support being offered to potential bidders.

"This background informed the approach which potential bidders, such as Scottish Power, took when deciding whether or not to submit a bid for Bulb."

One source suggested that Mr Anderson's reference to "procedural unfairness" could hint at a potential legal action against the government in the form of a possible judicial review.

Scottish Power declined to comment on the letter.

Hopes of a deal with Octopus within weeks


A government spokesperson said: "The Special Administrators of Bulb are required by law to keep costs as low as possible.

"We continue to engage closely with them to ensure maximum value for money for taxpayers."

Further details of Ovo's interest in Bulb remain unclear.

Ministers are said to be hopeful of concluding a deal with Octopus within weeks.

Were it to be successful, a combined Ovo and Bulb would have about 5.5 million household customers - a size that could draw intense scrutiny from competition regulators, according to one analyst.

A £4bn rescue


Taxpayers' rescue of Bulb is set to cost the government up to £4bn, Sky News revealed recently, with that figure including the £1bn of temporary funding provided as part of a sale to Octopus.

The last-gasp attempt to scupper Octopus's deal comes at a time of extraordinary turmoil in UK energy markets.

The government has already been forced to spend billions of pounds buying gas to supply Bulb customers because the company did not hedge its purchases in order to fix its cost base.

Wholesale gas prices have soared over the last year, with Vladimir Putin's invasion of Ukraine having a particularly pronounced impact on global energy markets.

The chancellor, Jeremy Hunt, announced this month that a huge subsidy package for consumers' energy bills would be scaled back, but it is still expected to cost many billions of pounds.

Octopus is understood to have negotiated a deal that would see it paying between £100m and £200m to take on Bulb's customer base, with a separate profit-share agreement giving the government a return for several years on earnings from Bulb customers.

Bulb's collapse in November 2021 was the most significant among dozens of supplier failures, with Ofgem, the industry regulator, facing heavy criticism for its approach to licensing new entrants to the market.

It was unclear on Monday whether talks about the sale of Bulb would be further complicated by Rishi Sunak's emergence as the new prime minister.

Newsletter

Related Articles

0:00
0:00
Close
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
×