Centrica pulls out of race for Bulb

According to the Financial Times, the move by the British Gas owner leaves just two potential suitors for the business, these being Octopus Energy and Masdar - a renewable energy business owned by the government of the United Arab Emirates. 

This news comes after the firm’s administrator Teneo published its first progress report for the business. It revealed the supplier had lost nearly £600 for each customer on its books since it was bailed out last November for nearly £1.7bn to cover running costs.

Its biggest costs have been the £1.5bn spent on buying gas and power for its customers, with the other charges including £371m of “industry costs” for the transmission of energy, as well as meter rentals and installation. It did however receive £1.2bn from its customers. 

Overall it racked up £886m in losses in the first six months since nationalisation. A senior industry source told The Times that the size of the loss was a result of the government failing to hedge the gas in advance for Bulb’s customers. 

Final bids to purchase the business are due on Thursday (30 June).