Octopus Energy hands lifeline to 1.5million Brits as firm set to acquire Bulb’s customers

Octopus’ attempted takeover of Bulb includes an alleged provision of state aid to help make the sales process smoother. The aid, which is another term for the Government’s provision of financial support for a business, will then be repaid to the Government over time, along with a profit-sharing deal for Bulb’s 1.6 million customers.

But this is usually banned if it threatens to distort competition between companies unless it can be justified on the grounds of public interest. Centrica is moving to block the agreement in court, citing these concerns and the “UK’s compliance with its international obligations under the UK/EU Trade and Cooperation Agreement” and the “Ireland/Northern Ireland Protocol”. Octopus also operates a heat pump company in Northern Ireland, complicating matters.

Because of this, lawyers have warned that the EU may be able to get involved in the process. Ben Rayment, barrister and competition expert at Monckton Chambers, told City A.M: “The fact is that, even though we left the EU, under the special arrangements that apply to Northern Ireland, we did retain the EU state aid rules for trade between Northern Ireland and the Republic.

“It is not a payment directly relating to Octopus heat pumps in Northern Ireland – if it is a subsidy, it’s indirect….. It’s certainly not expressly related to Octopus’ heat pump business. It’s about support to Bulb.”

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Article source: https://www.express.co.uk/news/science/1712402/octopus-energy-bulb-acquisition-greg-jackson-special-administration