Key facts
- Octopus Energy CEO Greg Jackson is calling for urgent reform of the UK's energy market.
- Jackson highlighted the UK's exposure to volatile global gas prices, exacerbated by conflicts in Ukraine and Iran.
- He urged greater utilization of wind energy to benefit from cheaper prices when green energy is abundant.
- Energy regulator Ofgem will increase its household bill price cap by four percent to £1,723 annually in October.
- Analysts predict a further nine percent increase to £1,872 in January and an additional £264 cost for households over the next decade.
Octopus Energy CEO Greg Jackson has urged "urgent reform" of the UK's energy market to shield households from volatile global gas prices. Jackson, founder of the UK's largest household electricity supplier, stated that while recent government measures have helped, bills remain too high and the nation is "far too exposed" to fluctuating international gas costs, particularly due to conflicts in Ukraine and Iran.
He emphasized the need to better utilize domestic wind power, allowing consumers to benefit from cheaper prices when green energy is abundant. These calls come as energy regulator Ofgem announced a four percent increase in its household bill price cap, raising it to £1,723 per year starting in October.
Further forecasts from Cornwall Insight suggest the price cap could rise by another nine percent to £1,872 in January. Analysts at Boston Consulting predict that households will face an additional £264 in energy costs over the next decade. Jackson, who founded the clean energy provider Octopus in 2015, has previously supported allowing new drilling in the North Sea to enhance the UK's energy security and potentially lower prices.
However, the Prime Minister has reportedly postponed a decision on contentious North Sea gasfield developments, such as Rosebank and Jackdaw, until the autumn, citing concerns about public perception during a period of extreme weather. Ofgem's price cap increase has drawn criticism from political opposition figures, with Shadow environment secretary Victoria Atkins describing the hike as "outrageous" and accusing the government of "broken promises."