UK sale of collapsed Bulb to Octopus under microscope in legal battle
The UK government’s sale of collapsed energy firm Bulb is at the centre of focus of an appeal today as British Gas and E.ON seek a judicial review on the deal.
Under the former Conservative government, an agreement was reached in October 2022 with the special administrators of Bulb for it to be acquired by Octopus Energy.
Under the agreement, Bulb’s 1.5m customers were transferred to Octopus Energy.
It was reported in July 2022 that Octopus was the only firm to submit a final offer bid for Bulb.
However, in 2023, Gas Trading, ScottishPower and E.ON all submitted applications seeking permission to bring a judicial review claim to challenge this decisions made by the Secretary of State for Energy Security and Net Zero (DESNZ)
This department was formerly known as the Secretary of State for Business, Enterprise and Industrial Strategy when in 2023 it was split to form the Department for Business and Trade (DBT), the DESNZ and the Department for Science, Innovation and Technology (DSIT).
This case is packed with the City’s top law firms including, then known as, Allen & Overy for ScottishPower, Pinsent Masons for E.ON, Towerhouse and, then known as, Shearman & Sterling for British Gas and Hogan Lovells for the government department.
A “rolled up” hearing went before the High Court in late February 2023 in front of Lord Justice Singh and Mr Justice Foxton. The judgment was revealed in last March which rejected the application for a judicial review.
The court refused the permission on the basis of alleged undue delay and it stated that, had it not done so, it would have refused permission on some grounds and granted permission on others but refused judicial review on the merits.
The parties are now back in court, starting at the Court of Appeal today, British Gas and E.ON are aiming to reverse this decision by the High Court and battle for the judicial review.