The most startling number in the Office for Budget Responsibility’s economic outlook last week – aside from the gloomy big-picture forecasts – was found in a one-sentence footnote on page nine. “The total cost of the Bulb Energy bailout has reached £6.5bn, with £4.6bn of that in 2022-23 included in the autumn statement,” it stated baldly.
Let those figures sink in. Since March, when the OBR forecast that nationalisation of the bust energy supplier would cost £2.2bn, the figure has increased by the equivalent of almost £3,000 for each of Bulb’s 1.5m customers. As one energy trader puts it, even under the April-to-September price cap of £1,971 and even with high wholesale prices, it ought it be almost impossible for Bulb to clock up losses of that size during the low seasonal period for consumption.
