Energy supplier Octopus Energy is urging its customers to make a simple adjustment to their home heating systems that could put £65 back in their pockets ahead of the festive season. The key, according to the firm, lies in the often-overlooked boiler flow temperature setting.
The Simple Setting That Slashes Bills
Octopus explains that a boiler's flow setting dictates the temperature of the water when it leaves the appliance to heat radiators or provide hot water. Typically, this is set higher than necessary by default. The company recommends adjusting it to a more efficient range.
For households with a combi boiler, the advice is to set the flow temperature to 50°C for central heating and 55°C for hot water. For systems with a boiler and a separate hot water cylinder, the recommendation is to set the boiler flow temperature a few degrees above 60°C for both functions, while ensuring the cylinder itself is set at 60°C.
This minor tweak can lead to significant savings. According to innovation charity Nesta, reducing the flow temperature can cut a typical energy bill by around 12%, equating to roughly £65 in savings. The home should remain just as warm, but the boiler will operate more efficiently.
Kraken Technologies Prepares for Global Expansion
The energy-saving tip coincides with major corporate news from Octopus. The company has announced it is spinning off its proprietary software division, Kraken Technologies, into a separate entity.
This strategic demerger is designed to accelerate the global growth of the AI-powered platform. Kraken, initially developed for Octopus's own use, now licenses its technology to a host of other major utility providers, including EDF, E.ON Next, TalkTalk, and National Grid in the US.
The platform is already connected to more than 70 million household and business accounts worldwide. Through its licensing agreements, Kraken has secured $500 million in committed annual revenues, a figure that has quadrupled over the past three years.
A Potential Multi-Billion Pound Listing
The move fuels speculation about Kraken's future as an independent company. Reports from the Wall Street Journal suggest the business could be valued at as much as $15 billion (approximately £11 billion).
It is widely anticipated that Kraken will pursue a stock market listing within the next 12 months, with London and New York cited as the most likely locations for its initial public offering (IPO). This would mark a significant milestone for the UK-born technology, cementing its status as a major player in the global utility software market.
For now, Octopus Energy customers have a more immediate financial opportunity. By taking a few minutes to check their boiler settings, they can start saving energy and money immediately, just in time for the expensive Christmas period.
