Octopus chief urges energy market overhaul as bill cap rises

Greg Jackson, founder of Octopus Energy, has called for immediate structural changes to the UK energy market to shield households from fluctuating global gas prices. The chief executive of the country’s largest household electricity supplier stated that while recent government measures have provided some relief, energy costs remain excessively high. He highlighted that the nation remains overly dependent on volatile international gas markets, a situation exacerbated by conflicts in Ukraine and Iran. Jackson noted that gas prices have more than doubled since the beginning of the year, creating a significant double crisis that requires urgent attention to protect consumers.

Jackson argued that the market must be reformed to better utilise wind power and allow consumers to benefit from lower prices when renewable energy is abundant. His remarks follow an announcement by the energy regulator that the cap on household bills will increase by four per cent to £1,723 per year in October. Forecasts from Cornwall Insight suggest that prices will continue to rise, with the cap expected to jump by a further nine per cent to £1,872 from January. Analysts at Boston Consulting have estimated that households will face an additional £264 in energy costs within the next decade, underscoring the long-term financial pressure on families.

The debate over energy policy has intensified following previous calls by Jackson to permit new drilling in the North Sea. He has contended that expanding oilfield operations would enhance energy security and reduce prices, warning of a looming crisis. Prime Minister Andy Burnham had been expected to make a decision on the Rosebank and Jackdaw gasfields after consultations concluded earlier this month. However, reports indicate that the decision has been deferred until the autumn due to concerns about the political implications of approving new drilling during a period of record heat and drought. The recent price cap increase has drawn sharp criticism from opposition figures, including Shadow Environment Secretary Victoria Atkins, who accused the government of failing to keep promises regarding living costs and noted the impact on constituents reliant on heating oil.