The Office for National Statistics (ONS) has completed a classifications assessment of Bulb Energy Limited, which entered into a Special Administration Regime on 24 November 2021.
The ONS has concluded that Bulb Energy Limited in special administration is subject to public sector control, as it now requires consent from the Secretary of State for Business, Energy and Industrial Strategy to take out contracts, make appointments and sell and acquire assets. It also concluded that Bulb remains a market body, as it continues to pass the quantitative market test and continues to compete with other energy suppliers. As such, Bulb has been classified to the public non-financial corporations subsector within the public sector, with retrospective effect from 24 November 2021.
The Office for Budget Responsibility estimates that government payments to Bulb Energy Limited will increase public sector net borrowing by £1.2 billion in the financial year ending 2022, but this is yet to be finalised. The impact of reclassification on public sector net debt will depend on the value of assets and liabilities from the point of entering special administration. The total effects on the public finances will not be known until Bulb comes out of special administration.
The assessment was completed in the context of international statistical rules laid out in the United Nations System of National Accounts 2008, the European System of Accounts 2010 and the accompanying Manual on Government Deficit and Debt 2019. Further details of the classification can be found in our Public Sector Classification Guide.