British Gas owner Centrica pulls out of race to buy Bulb in blow to Government, which runs collapsed energy firm
British Gas owner Centrica has pulled out of the race to buy Bulb in a blow to the Government, which runs the collapsed energy firm.
Centrica was one of three parties in the running to purchase Bulb and take on its customers, along with Octopus Energy and Abu Dhabi rival Masdar.
But it has now ruled itself out, the Financial Times reported, leaving just two suitors.
Blow: Bulb, which has 1.6m customers, collapsed last November amid soaring natural gas prices
Bulb, which has 1.6m customers, collapsed last November amid soaring natural gas prices.
Since then, it has been propped up by the taxpayer in a bailout expected to cost at least £2.2billion.
According to an administrator’s report, it has made an £886m loss in the six months since the rescue.
Government officials were hoping for as much competition as possible to try to get the buyer to take on as much of its liabilities as possible.
But Centrica’s withdrawal suggests that bidders may be reluctant to take on too much risk.