But Bulb currently has no protection against further rises in wholesale prices, leaving it exposed to market volatility. Expert Tony Jordan warned that the £1billion figure could soar.
The partner at energy consultancy Auxilione reckons it could jump to at least £2.5billion over the next five months, saying: “A cold winter, a nuclear threat from Russia… Anything could
easily push the price of gas back up very quickly.
“And then that £2.5billion will look very small because it could go up to four, five or six billion.”
A Government spokesman said: “These figures are pure speculation…we are making sure we get the best possible outcome for Bulb’s customers and British taxpayers.”
A profit-share agreement will be put in place until agreed funding is repaid by Octopus. Shadow energy minister Alan Whitehead said the “British people are once again paying the price” for the Government’s “abject failure”.