Energy company asks government for £1bn in taxpayer money so it can finance collapsed rival takeover

One of Britain’s largest gas and electricity suppliers has asked the government for £1bn to fund its takeover of rival Bulb.

Sky News said Octopus Energy is nearing an agreement to buy the bankrupt company, which has already cost taxpayers billions.

The government has been trying to sell Bulb since it fell under the government in November last year.

Ministers intervened to ensure that Bulb’s customers would still get energy into their homes as they tried to find a buyer.

Sky News said Octopus Energy is nearing an agreement to buy the collapsed company, which has already cost taxpayers billions

Octopus, believed to be the sole bidder, is likely to inject between £100m and £200m as part of a deal. But it has asked the government for £1 billion in taxpayer aid in return for taking responsibility for Bulb’s 1.6 million customers.

The government will receive a share of the profits from Bulb customers as part of the deal.

Bulb collapsed amid the rising cost of wholesale gas. It is estimated that the cost to taxpayers of its failure could amount to more than £3 billion.

Octopus has won hundreds of thousands of customers over the past year, including the customer base of Avro Energy.