Evaluating only Bulb Energy’s profile at its peak — without knowing the outcome — the model ranked Competition as the #1 likely cause. Documented cause: Market timing.
Full Analysis
Free · no account needed
Documented cause
Bulb Energy served 1.7M UK customers on fixed green energy tariffs. In 2021 wholesale gas prices surged over 400%. Locked into fixed prices, Bulb could not pass costs to customers. It entered UK government special administration in November 2021 — the largest UK energy company failure in history. Octopus Energy acquired it in 2022 for £2.4B.
Lesson
“Fixed-price contracts in commodity markets are inherently short positions. When the commodity moves against you at scale, no brand equity absorbs the loss.”
FAQ
Why did Bulb Energy fail?
Bulb Energy failed because wholesale gas prices surged over 400% in 2021 while it was locked into fixed-price tariffs with 1.7M customers. Unable to pass the cost increase on, it entered government special administration in November 2021 — the largest UK energy company failure ever.
What happened to Bulb Energy customers?
Bulb Energy customers (1.7M) were initially protected under government special administration. Octopus Energy acquired Bulb in 2022 for £2.4B, taking on all customer accounts.