Octopus Energy CEO: UK Market Reform Could Cut Bills by £95 and Emissions by 18%
In a wide-ranging interview with Bloomberg Octopus Energy CEO Greg Jackson outlined his vision for overhauling the UK’s electricity market. He argued that Britain’s current energy pricing system is outdated and holding back both cost savings and decarbonization. With the right reforms, Jackson believes the UK could slash consumer bills, cut emissions, and lead the world in building a cleaner, smarter energy system.
Jackson, a prominent figure in the UK’s green energy sector, has long championed a more dynamic and fair approach to energy pricing—one that reflects the growing dominance of cheap renewables rather than tying costs to volatile gas markets. In the interview, he called for urgent action to reform how electricity is priced, planned, and delivered, warning that without change, the benefits of the energy transition risk being lost on consumers.
Background: Who Is Octopus Energy?
Octopus Energy is a UK-based energy supplier and technology company known for its commitment to green energy and its dynamic pricing model. Founded in 2015, the company has grown rapidly and now supplies millions of households across the UK and abroad. It also operates Kraken, its proprietary tech platform, which manages energy for other suppliers worldwide. CEO Greg Jackson has been a vocal advocate for reforming the energy system to support a fair transition to net zero while lowering costs for consumers.
Why Market Reform Matters
In the Bloomberg interview, Jackson argued that the current UK electricity market structure—where wholesale prices are often set by expensive gas generation—prevents households from seeing the benefits of cheap renewables. He said that with the right reforms, UK families could save around $120 (approx. £95) per year on energy bills. These reforms could also cut emissions by 18% by reducing reliance on gas and coal plants during gaps in wind and solar output.
Support for Net Zero Hinges on Affordability
Jackson warned that public support for the UK’s net zero goals is fragile if bills stay high. Polling cited in the interview showed that while 43% of UK voters currently support the 2050 net zero target, that figure plummets to just 13% if energy costs rise. “If you want to deliver net zero,” he said, “you have to focus on bringing costs down.”
Wasted Wind and the Need for a Smarter Grid
He also highlighted the inefficiencies of building renewables in poorly connected areas. For example, some UK offshore wind farms are paid to shut down up to 71% of the time because the grid cannot transport the electricity. Meanwhile, fossil fuel plants elsewhere are paid to ramp up. Jackson called for better grid planning and smarter placement of renewables near demand centers or strong grid links.
Locational Pricing: A Proven Fix
Countries like the US (especially the Northeast), Sweden, and Australia use locational or nodal pricing, where energy prices vary by region depending on local supply and demand. These models, Jackson said, help maximize the value of renewables and are already helping to bring prices down. Without similar reforms, the UK risks falling behind and keeping bills unnecessarily high.
The AI and Data Center Energy Factor
Jackson said AI will increase electricity demand but warned against overreliance on unproven technologies like small modular reactors (SMRs), which are still years from deployment. He pointed to DeepSeek, a new AI model using 20 times less energy than its predecessors, as evidence that AI systems can become more efficient. With data centers able to locate near cheap renewables, he sees flexibility and smart planning as key to managing future energy needs.