The boss of Bulb is to walk away from his £250,000-a-year job after the government bailed out the failing electricity supplier.
A company under construction managed by a special administrator as the government looks for a buyer, said Hayden Wood is “stepping back from the business”.
The chief executive was criticized by MPs when it was revealed he was still on full salary despite Bulb going into administration and requiring a £1.7bn government loan to keep it afloat .
The bailout for taxpayers was the biggest since the 2008 financial crisis when the government bought stakes in Royal Bank of Scotland, Lloyds Banking Group and Halifax Bank of Scotland.
At a House of Commons committee hearing in April, Mr Wood apologized to MPs for “getting it wrong” with the company.
According to Financial Timesthe outgoing executive director will not receive severance pay.
Mr. Wood will leave by the end of July and the rest of Bulb’s executive team will take over his duties.
“We wish him all the best for the future,” Bulba said in a statement on Friday.
Bulb is the largest energy supplier that has faced financial problems during the spike in energy prices. The company grew quickly by offering cheap deals and discounts to new customers, but it failed to adequately hedge against the risk of price increases.
This meant it was forced to buy large volumes of energy at a higher price than it could sell to customers under government-imposed price caps.
The government is currently considering takeover bids for the company, with the deadline for bids ending on Thursday. Ministers hope an agreement can be agreed within the next month.
However, there are a limited number of providers large enough to do a deal, which would mean accepting 1.6 million customers.
British Gas, the owner of Centrica, the UK’s biggest energy company, is understood to have made it clear it will not be taking the bid forward.
Rival supplier Octopus is expected to participate alongside Masdar, an Abu Dhabi-based energy company.
Corporate advisory firm Teneo has been hired as a special administrator to oversee the firm’s insolvency.
It later hired experts from Lazard to launch a sales process that attracted interest from a number of major suppliers.
Bulb’s size meant it was too big for the government to allow it to go through the usual “supplier of last resort” process, which involves customers switching to rival energy companies.
Bulb boss resigns | The Independent
Source link Bulb boss resigns | The Independent