Proactive Investors - Energy firms scrutinising a deal between Octopus Energy and the UK government for failed supplier Bulb have alleged the deal breaches the UK and EU’s Northern Ireland protocol.
Centrica (LON:CNA), which owns British Gas, said the deal created “serious public interest” in terms of UK and EU trade agreements in documents filed in London’s high court last week.
“This is one of the most politically sensitive subsidy cases to have emerged since Brexit,” said Monckton Chambers competition expert Ben Rayment.
The deal, which will see Octopus take on Bulb’s 1.6mln customers to become the UK’s third largest energy supplier, was agreed in October, with the failed supplier having been in government handled administration since late 2021.
E.ON and ScottishPower, alongside Centrica, have initiated a legal review of the deal suggesting state financial support handed to Octopus would break competition laws.
Octopus is expected to receive some £1bn from the government when the takeover is scheduled to be finalised on 20 December, a revelation that has infuriated its rivals, with the total cost of Bulb’s bailout likely costing the taxpayer £6.5bn.
Lawyers representing Octopus suggested the acquisition had to be completed by the new year to “ensure continuity of supplies for customers” served by Bulb.