EU could interfere in Octopus Energy’s Bulb takeover deal despite the Brexit vote

State aid, which is another term for the Government’s provision of financial support for a business, is usually banned if it threatens to distort competition between companies unless it can be justified on the grounds of public interest. 

Octopus’ attempted takeover of Bulb, reported to be worth over £1billion, does include an alleged provision of state aid to help make the sales process smoother. The aid will then be repaid to the Government over time, along with a profit-sharing deal for Bulb’s 1.6m customers.

But opposing companies argue that the deal would in fact distort competition in Britain’s energy market and may come at a higher cost to taxpayers and households, claiming a more transparent sales process would cost the taxpayer less.

Centrica, the owner of British Gas, has concerns about the deal and is moving to block the agreement in court. In court documents filed earlier this month, the supplier argued that there are “serious public interest issues” over the deal. 

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Article source: https://www.express.co.uk/news/science/1711703/eu-octopus-energy-bulb-takeover-brexit-northern-ireland-protocol