This is Money Podcast Interview: Octopus Energy boss Greg Jackson speaks to Simon Lambert
Sep 10, 2025
Greg Jackson, CEO and founder of Octopus Energy, discusses the UK's pressing energy challenges. He critiques the current energy price cap and explores how auction systems inflate prices, particularly due to fossil fuels. The conversation highlights innovations in renewable energy, the role of offshore wind, and the benefits of solar technology for households. Jackson offers strategies for consumers to navigate energy costs effectively, advocating for reforms that could lead to 'zero bills homes' and smarter energy solutions.
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Two Drivers Of High Energy Bills
- High bills come from two sources: elevated global gas prices and inefficient domestic system costs.
- Government policy and market design drive many avoidable system expenses that raise bills.
Paying To Waste Renewable Power
- The UK sometimes pays wind farms to turn off and then pays gas generators to fill gaps, wasting money.
- Fixing market rules and network incentives could stop these payments and reduce bills.
Marginal Pricing Inflates Consumer Costs
- The UK electricity auction sets the market price by the marginal (most expensive) unit.
- That system pays cheap generators the high marginal price and inflates consumer costs.