Bulb boss steps down | The Independent

Bulb boss steps down | The Independent

  • Business
  • July 1, 2022
  • No Comment
  • 4
  • 4 minutes read

The boss of Bulb will step down from his £250,000-a-year job after the failed energy supplier was bailed out by the government.

The firm, which is being run by a special administrator as the government seeks a buyer, said Hayden Wood was “stepping back from the business”.

The chief executive was criticised by MPs when it emerged that he was still taking his full salary, despite Bulb collapsing into administration and requiring a £1.7bn government loan to keep it afloat.

The taxpayer bailout was the largest the the 2008 financial crisis when governement bought stakes in Royal Bank of Scotland, Lloyds Banking Group and Halifax Bank of Scotland.

At a House of Commons committee hearing in April, Wood apologised to MPs for the “way things turned out” with the company.

According to the Financial Times, the departing chief executive will not receive a severance package.

Mr Wood will leave by the end of July with the remainning members of Bulb’s executive team taking on his responsibilities.

“We wish him all the best for the future,” Bulb said in a statement on Friday.

Bulb is the largest energy supplier to run into financial problems amid surging energy prices. The company grew rapidly by offering cheap deals and discounts to new customers, but it had failed to adequately hedge against the risk of rising prices.

This meant it was forced to buy large amounts of energy at a higher price than it could sell to customers for under the government’s price cap.

The government is currently considering offers to take over the company, with a deadline for bids passing on Thursday. Ministers hopes a deal can be agreed over the next month.

However, there are a limited number of suppliers big enough to do a deal, which would mean taking on 1.6 million customers.

British Gas owner Centrica – the UK’s largest energy company – is thought to have signalled that it will not be moving ahead a bid.

Rival supplier Octopus is believed to be left in the running alongside Masdar – an energy company from Abu Dhabi.

Corporate advisory firm Teneo was hired as special administrators in order to oversee the firm’s insolvency.

It later hired experts from Lazards over the launch a sale process, which drew interest from a number of major suppliers.

Bulb’s size meant it was too big for the Government to allow it to go through the normal “supplier of last resort” process which sees customers moved over to rival energy companies.

Source link

Related post

Retail Inflation Likely to Drop in July; Will it Come Under RBI’s Tolerance Level?

Retail Inflation Likely to Drop in July; Will it…

Even as the global commodities prices are witnessing easing amid recession fear, inflation in India might have also slowed in July.…
Tata-Owned Air India to start daily flight services between Delhi and Vancouver | Aviation News

Tata-Owned Air India to start daily flight services between…

Tata-owned Air India is working on improving its flight connectivity between India and Canada by increasing the flight frequency between Delhi and…
Domestic airlines get a boost as cap on ticket prices lifts

Domestic airlines get a boost as cap on ticket…

BENGALURU: Shares of Indian domestic airlines rose on Thursday, a day after the civil aviation ministry said it will remove the…

Leave a Reply

Your email address will not be published.