I have already analysed the last available accounts of Bulb. They are not pretty. But, to suggest that they required a capital injection of £1.7bn seems far-fetched, based on what is available on public record.
To put this in context, that level of support amounts to £1062.50 per customer on the basis of the above data, or about half a year’s energy bills for each of them given current prices.
If the government imposed price cap is having that much of an impact then that needs to be stated and the implications for the rest of the market must be spelt out as well.
The impact and implications of that price cap must be spelled out, yes indeedy.
And if support of this scale is required because of the impact of the price cap at a time when wholesale prices remain high, but below their peak, then the obvious implication is that there will be no domestic energy supply companies left in the UK soon because of the losses they must all be sustaining and in that case we face the scenario of a totally failed market rather sooner than I anticipated.
Well, yes, could even be that government setting prices is a damn fool idea. Something to chew upon at least.