The UK government has set aside nearly £ 1.7 billion to allow energy company Bulb to continue supplying energy to its customers.
The company was placed under special administration on Wednesday, which will allow it to continue operating for the time being.
Bulb will be managed by administrator Teneo until a buyer can be found or until its customers have moved.
The government loan means the administration is run in such a way that the lights stay on for Bulb's 1.7 million customers .
Teneo estimates it will cost around £ 2.1 billion to keep Bulb trading going until the end of April next year.
Business Secretary Kwasi Kwarteng can provide more money to the company if needed.
Without the money, Bulb could not have continued to dsurpass mid-December, court documents show.
Due to its size, Bulb will run as normal for the time being, rather than immediately shifting its customers to other vendors, as is 'is produced with other failing energy suppliers.
By April The energy price cap may have increased significantly, this which would mean higher revenues for the business.
The business is three times the size of any other energy supplier that has failed in recent years.
Normally the Ofgem regulator lets a business fail and moves its customers to a new supplier.
At the High Court in London, Judge Adam Johnson said if it was not resolved, the 'Uncertainty regarding Bulb "would inevitably have an effect on customers, employees and suppliers.
He said the administration was desi gned "to keep the company sourcing from energy, with a view to its rescue if possible ".
He added that an alternative would be to appoint a supplier of last resort, adding: " This is considered impractical here, given Bulb 's size and importance as a supplier ".
The judge said the £ 1.7bn would be " of existential importance to Bulb " .
'Risky bets '
Earlier today, Kwarteng said the special administration regime was a temporary arrangement to provide "a trickle safety net to protect consumers and ensure continued supply ".
He told the House of Commons: " We don't want this company to stay in this temporary state.re longer than is relatively necessary. "
For the job, shadow business secretary Ed Miliband said,“ With so many businesses going bankrupt in just two months, something is wrong. occurs nowhere else in the world, this indicates a systemic regulatory failure.
"Companies took risky bets and were allowed to do so and the government and Ofgem have significantly deregulated operating conditions in 2016.
Mr. Miliband called for "a proper external review of market regulation ".
Due to a cap on what companies can charge their customers, some companies have been forced to sell energy at a lower price than they bought it for.
Large companies tend to buy their gas longer in advance, which helps them avoid the big hits due to soaring prices. Cepmeanwhile, small businesses that are less able to do so have come under pressure.
Since the beginning of September, 22 energy suppliers have gone bankrupt due to soaring gas prices.
Labor MP Alex Sobel said: “We are returning to an oligopoly of energy companies increasing their profits while the supplier of last resort socializes the losses.
Mr. Kwarteng replied: "I have always maintained that competition is relatively essential in this market.
" What has happened is that there has been a huge mismatch between the wholesale price and the retail price cap, and the retail price cap is there to protect consumers. "
Liberal Democrat MP Layla Moran has suggested a "Northern Rock- style energy company to take on clients of companies that have gone bankrupt " if the current process does not work.
Consumer group who? Said the support "should reassure " Bulb customers.
"We recommend that Bulb customers do nothing and wait for more information on the special administration process", said Lisa Barber, editor of home products and services.
"Her customers will continue to have their bills limited by the price cap, which is probably the best deal for them in this regard. moment.
"There is little savings to be made by switching and some suppliers are not accepting new customers due to high wholesale gas prices, " he said. -she added.