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Finance

Octopus hits back at challenge to Bulb deal arguing it was more ‘nimble’ than rivals



  By - Stephen   On 2023-03-03T09:36:07



Octopus Energy has hit back at the energy firms challenging its takeover of Bulb Energy, with the supplier’s lawyer arguing in court today that the company was simply more “nimble” and “saw an opportunity that others missed” in its deal-making with the government.

Its lawyer argued that the rival suppliers were not concerned about how to advance public interest in the energy crisis, and were challenging the deal because it went against their commercial interest – with Octopus proving to be an increasing threat to their market share.

“These claimants are members of what is known as the Big Six, and by contrast Octopus was established in 2016 and its market share has steadily increased,” he said.

The company was defending its takeover of Bulb in the final session of a three-day judicial review at the Royal Court of Justice in London, which has involved three other Big Six suppliers – EON UK, Scottish Power and British Gas owner Centrica – alongside the government and administrators Teneo.

The case is between the government and the three rival energy firms, but Octopus contributed to proceedings today as an interested party.

Octopus’ takeover of Bulb was finally greenlit in court last year and makes the energy firm the third biggest in the UK with nearly five million customers, behind just two of the claimants in terms of overall market share.

The deal for Bulb includes a nine-figure sum, a profit-share agreement with the government involving the 1.6m customers and hedging support in the form of a loan.

However, the takeover is being challenged in a judicial review, raising the prospect of fines, compensation or the deal potentially being revoked if its challengers are successful.

British Gas, EON and Scottish Power have consistently argued the government unlawfully committed billions of pounds of taxpayers’ money to prop up Bulb, without considering consequences to the wider energy market.

During this week’s proceedings, British Gas owner Centrica has raised concerns over the lack of transparency over the deal and argued throughout legal proceedings that Octopus was offered terms by the government that were not explicitly made available to other suppliers.

This is an argument Octopus disputes.

Its lawyer today argued the rival companies were well-resourced players who were “able to enter negotiations if it was in their interests to do so” and it was commercial reasons that meant they did not proceed with bids to match Octopus.

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Author: Stephen

Stephen is an internationally acclaimed business news journalist with 20 years of experience in the industry. Having worked for some of the most prestigious newspapers, magazines and news organizations, Stephen has become a respected leader in international business news. His writing has been featured in publications such as The Wall Street Journal, The Financial Times, The New York Times, and Bloomberg. Stephen has also appeared as a commentator on several radio and television programs, including CNN, CNBC, and Bloomberg TV. He is a sought after public speaker, appearing regularly at conferences and industry events to discuss the latest business news. With his wealth of experience, Stephen is an invaluable resource for anyone looking to stay up to date on the latest international business news.

Top Liked Comments:

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Joan Kazmierczak

2022-02-27 10:59

I found this article really useful!

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Gaylene Roberie

2022-10-03 01:54

Thanks for the interesting information!

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Erasmo Lanz

2022-10-09 08:55

This was a really helpful article!

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Nancie Howe

2022-06-28 20:28

This was so interesting to read!

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Larisa Wiers

2023-01-12 13:22

Thanks for the useful information!

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