11th Nov 2022 21:49
(Alliance News) - The latest stage in the sale of collapsed energy company Bulb to Octopus Energy has been delayed by a High Court judge after concerns were raised by other energy companies.
In October, Octopus Energy announced it had sealed a deal to buy its rival and would be taking on Bulb's 1.5 million customers after the firm was placed into special administration in November 2021.
The Department for Business, Energy & Industrial Strategy confirmed an agreement had been reached between special administrators of Bulb and Octopus, saying the deal will "protect consumers and taxpayers" and "provides a stable new home for Bulb's customers and 650 employees".
BEIS previously said the sale will be completed following a statutory process called an energy transfer scheme, which will move Bulb's relevant assets into a new separate entity that will "protect consumers during the transfer process".
Business and Energy Secretary Grant Shapps announced he had approved the scheme on Wednesday, to take effect on a date ordered by a High Court judge.
Bulb's administrators had asked for the transfer to start on November 15 but on Friday, Justice Zacaroli put back the date after energy companies Scottish Power, British Gas and Eon raised concerns about the proposal.
British Gas and Scottish Power argued they had not been given enough time to consider the deal and raised the potential of a legal challenge against Shapps' decision in a different part of the High Court.
Richard Fisher KC, representing the administrators from the Teneo consultancy firm, said there was "significant commercial urgency to justify going ahead today" and asked the judge not to adjourn.
However, Jonathan Adkin KC, for British Gas, said there were concerns the proposal could be unlawful.
He told the court: "There has been a serious lack of transparency in relation to this matter, which market partners and their customers have a real interest in, and there is a genuinely held concern about what has been decided and that it might be unlawful."
Adkin said the company was reserving its position on whether they would be challenging Shapps' decision in court.
"There has been a total lack of consultation, there is no evidence that the Secretary of State has taken into account our concerns or other market parties," he added.
David Allison KC, for Scottish Power, later said there were "very serious concerns about the process".
He told the court: "There is such a degree of redactions to the terms of the deal it is impossible for Scottish Power and its legal team to understand the agreement."
The High Court judge adjourned ordering the start of the scheme, with a hearing now expected around the end of the month.
Justice Zacaroli said: "I do not think there is a level of urgency that requires me to go ahead and appoint an effective date today."
Friday's hearing comes after a different judge delayed a bid by Bulb's administrators for repayment of costs totalling more than GBP28 million.
At a High Court hearing on Thursday, Judge Sally Barber was asked to approve the remuneration of eight months' worth of costs totalling GBP24.9 million as well as more than GBP3 million in pre-appointment costs.
The court was told that BEIS had approved the figures, however, Judge Barber said further information about the arrangement was required and put back the hearing to a future date.
source: PA
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