The founder of Octopus Energy has issued a stark warning to millions of UK households, labelling parts of the nation's energy system as "bonkers" and riddled with costly waste.
Greg Jackson spoke out following the Christmas period, as the new energy price cap set by regulator Ofgem came into effect. He argued that families are being unfairly disadvantaged by a structure that allows significant inefficiencies.
A System 'Gaming' the Consumer
Mr Jackson stated that energy bills desperately need to fall, but claimed this will only happen if the government takes a tougher stance on large companies exploiting the system.
He highlighted one particularly shocking example of waste: paying wind farms over £1 billion to turn off on windy days when there is too much power for the grid to handle. He described this practice as emblematic of the "bonkers" red tape burdening the sector.
The Path to Affordable, Secure Energy
The Octopus Energy chief outlined a two-fold solution for the UK's energy crisis. Firstly, he emphasised moving away from volatile fossil fuels. "As long as we’re hooked on them, we’re at the mercy of dictators and foreign governments," he warned, adding that more North Sea gas would only be a "drop in the ocean".
Secondly, he championed the rapid improvement and falling cost of electric technologies like solar panels, batteries, and electric cars. Unlike imported gas, he noted, solar panels generate power for decades after installation.
Jackson also urged energy firms to improve customer service by answering phones directly instead of hiding behind automated "crappy systems and computers that say no".
New-Build Homes Policy Under Fire
This criticism comes alongside controversy over potential government policy on new housing. Ministers in England are poised to allow new homes to be built without carbon-cutting technology, following pressure from housebuilders.
Energy expert Jess Ralston, from the Energy and Climate Intelligence Unit, criticised this potential climbdown. She stated that batteries and other net-zero tech in new builds from 2027 are crucial for lowering bills by enabling homes to use their own solar power efficiently.
"New-builds being built without the latest cost-saving net zero tech may mean we’re not making the most of our own power, increasing bills and meaning we need more gas from abroad," Ralston concluded.
