Octopus calls on Ofgem to heed Watchdog’s warnings
- Study warns that Ofgem reforms could hike energy bills
- Octopus supports stringent rules on hedging and management of energy retailers that would reduce risk without increasing bills
London, 22th June 2022 - Octopus Energy welcomes a new report by the National Audit Office (NAO) published today, which estimates failure of badly run companies will cost consumers £2.7bn.
Since the start of the energy crisis in September last year, 28 energy suppliers have exited the UK energy market due to insufficient hedging and poor management, and one is in special administration funded by the government.
According to NAO’s study, measures proposed by the energy regulator Ofgem to create a more financially robust market could inadvertently increase energy bills for consumers.
The watchdog also finds that innovative companies have driven down costs for consumers, helped reduce energy consumption and use energy more flexibly.
Octopus Energy, now the fourth largest energy retailer in the UK, is by far the best-backed and most innovative new entrant to the market. Launched in 2016, its focus on technology, customer service and transparency have made it the only energy company recommended by Which? 5 years in a row.
Octopus has received over £1bn of investment from some of the world’s biggest energy companies and investors. Octopus have £4bn of renewable generation and a technology licensing business with 9 digit revenue. They have received 16x more investment than the biggest failure, Bulb, and 200x more investment than some of the failed companies.
Since the start of the energy crisis, the company has been calling for stringent rules on hedging and management of energy retailers to improve resilience and create a sustainable and robust energy market without inflating energy bills for consumers and endangering competition.
Greg Jackson, CEO and founder of Octopus Energy Group, comments:
"NAO's warning is clear: Regulators need to be careful. They lumbered people with extra costs when they handed the market to a bunch of Del Boys, and now they risk putting prices up by loading extra costs onto everyone and handing the market back to turgid incumbents.
“Instead of giving in to pressure from archaic companies, whose proposals will only drive up bills and supplier profits, Ofgem needs to implement simple, cost-effective solutions such as strict rules on hedging and management to keep prices down and foster tough competition.”
Notes to editors:
Octopus Energy Group
About Octopus Energy Group
Octopus Energy Group is a global energy tech pioneer, launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. It is part of Octopus Group, which is a certified BCorp. With operations in 13 countries, Octopus Energy Group is a British company driving global change.
Octopus’s domestic energy arm already serves 3.2 million customers with cheaper greener power, through Octopus Energy, M&S Energy, Affect Energy, Ebico, London Power and Co-op Energy. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes. Octopus Energy Generation is one of Europe’s largest investors in renewable energy, managing a £3.4 billion portfolio of renewable energy assets throughout the continent.
All of these are made possible by Octopus’s tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to support over 20 million customer accounts worldwide, through deals with EDF Energy, Good Energy, E.ON energy and Origin Energy.
In December 2021, Octopus Energy Group was valued at approximately $5 billion following a $600 million investment from Generation Investment Management and a $300 million investment from Canada Pensions Plan Investments Board. Both investors back businesses that drive sustainability, promote green energy and tackle climate change. It was the company’s third major investment round since launching to the market.
For more information, check out our website.
Hey I'm Constantine, welcome to Octopus Energy!×Close window