October 25, 2021

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Bulb keeping options open amid rising prices and takeover speculation

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Green energy firm Bulb are keeping their options open as speculation increases that it could soon become a takeover target.

Ovo Energy are the latest believed to be sniffing around Bulb, which serves some 1.5m customers. Octopus Energy were also rumoured to be weighing up a bid.

The Sunday Telegraph first reported Ovo’s interest.

Bulb confirmed reports last month that it was engaged in early fundraising efforts in partnership with bankers Lazard, as rising energy prices continue to press margins in the sector.

“Like everyone in the industry, we’re monitoring wholesale prices and their impact on our business,” Bulb said in a statement.

The energy market has been rocked by an increase in natural gas prices. Suppliers have largely been unable to pass on those hikes to consumers due to the energy cap, which limits the amount suppliers can charge consumers.

A number of firms have hit the wall in recent weeks, with customers moved to other energy suppliers to ensure the lights remain on.

Ovo purchased the household supply division of SSE last year, with the firm saying this morning that the integration was going well.

The once-challenger firm is now the UK’s third largest domestic energy supplier.

Revenues have increased from £1.4bn last year to £4.5bn in this financial year.

Ovo declined to comment today.

Read more: Octopus scoops up Avro Energy clients as it looks to make move on Bulb

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