The Plan
Greg Jackson, founder and CEO of Octopus Energy, said overhauling how electricity is priced — decoupling it from gas benchmarks — would save a typical household up to £114 a year. A further £75 could be saved by shifting environmental levies from energy bills into general taxation, where higher earners would bear more of the cost through the progressive tax system. Iinstalleronline
“The new Prime Minister has a golden opportunity to change the direction of energy bills, boosting electrification and slashing costs for families and businesses,” Jackson said. “It’s clear that market reform was rejected without a Plan B, and that the path we are currently on will see bills rise for years to come.” Iinstalleronline
Jackson added that businesses and industry could save an additional £6 billion a year through market reform, unlocking total savings of up to £83 billion by 2050. Iinstalleronline
Burnham’s Energy Agenda
The intervention aligns with Burnham’s stated priorities. The Telegraph reported on July 10 that allies of the prime minister-in-waiting were drawing up an “affordable energy guarantee” that would offer all households discounted rates for essential energy use, potentially saving middle-income homes around £225 a year. That plan, developed with input from the Joseph Rowntree Foundation and former energy minister Miatta Fahnbulleh, would adjust thresholds based on household size. Ttelegraph
Burnham used a speech in late June to set out a ten-year plan to “rewire” Britain, with energy costs at its centre. Cutting the cost of living has emerged as a defining challenge for the incoming administration, with polling showing 59 per cent of Britons do not believe energy bills are affordable. Bbusinessgreen
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Market Context
Jackson warned that current market rules, which tie electricity prices to gas benchmarks, lead to perverse outcomes — British batteries charging when they should discharge, and interconnectors importing electricity during surpluses. The call for reform echoes arguments Jackson has made since at least 2024, when he urged the then-government to adopt locational pricing. Several OECD countries already operate under the kind of reformed market structure Octopus is advocating. Llinkedin
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