The UK’s sixth largest energy company, Bulb, is racing to secure an emergency cash injection to avoid collapse as a record spike in energy prices uproots the sector.
The energy startup, which supplies electricity and gas to 1.7m customers in the UK, is seeking advice from investment bank Lazard in an attempt to shore up its balance sheet.
A new cash injection from investors is one of the options being considered by the challenger energy brand, which is also talking to other suppliers about a possible joint venture or merger, according to the Financial Times, who first reported the news.
A Bulb spokesperson said: “From time to time we explore various opportunities to fund our business plans and further our mission to lower bills and lower CO2.
“Like everyone in the industry, we’re monitoring wholesale prices and their impact on our business.”
It comes after two UK energy suppliers, Utility Point and People’s Energy, went bust earlier this week, leaving 500,000 customers needing a new provider.
Just the week prior, PfP Energy and Moneyplus Energy both confirmed they were also ceasing to trade, leaving another 100,000 customers on the hunt for a new energy provider.
The spate of failures comes amid a record spike in energy prices due to a combination of low wind power and global gas shortages.
The price hikes are expected to lead to household energy bills increasing until 2022, which could see yet more suppliers go out of business.