What does special administration at energy company mean?

Bulb, the UK’s seventh largest energy supplier, was the first energy company to enter special administration. Under such circumstances, Tania Clench, legal director at law firm Cripps Pemberton Greenish, examines the responsibilities of the insolvency practitioner

Ordinarily, when an energy company fails and customers are at risk of losing their energy supply, Ofgem has two options. Firstly, it can utilise its supplier of last resort (SoLR) powers to designate an alternative supplier to provide for the customers.

So far in 2021, Ofgem has used SoLR powers to do this on 20 occasions. In the event that this is not possible, their second option is to resort to the special administration regime which must be approved by the Secretary of State.

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