Tuesday, August 9, 2022
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Octopus Energy CEO hands UK lifeline out of energy crisis with 30-year plan


British households are currently facing the worst impacts of the global fossil fuel energy crisis, as energy bills are set to reach a record £3,000 by October. Ofgem’s CEO previously warned that around 12 million people will face fuel poverty as a result of the price cap rise over this winter. However, Greg Jackson, the CEO of Octopus Energy, said the UK needs to continue its support for vulnerable households and spread out the energy crisis over three decades.

Speaking to Express.co.uk, he warned of the risks of not tackling rising inflation, saying: “We’ve got inflation running at close to 10 percent, and once you get into an inflationary spiral that is very hard to get us out of.

“So, spreading costs over a long period of time reduces the impacts on inflation, and that stops the spiral.

“With spirals the problem as we’ve seen, energy prices are flowing through everything in the economy, and that’s the thing that if you’re not careful, everyone’s chasing [inflation] up.

“Spreading is beneficial, it helps hard-pressed customers and it helps reduce the inflationary spiral.”

Aside from the costs of energy and food, which are reaching eye-watering levels around the world, the UK has seen the price of goods spike by 8 percent over the past two years, nearly twice that in the Eurozone, which rose by 4.7 percent.

Mr Jackson described the Covid-19 pandemic as an earthquake, that the UK spent massive amounts of money trying to fight, using schemes like the furlough and business support packages.

He said: “What we’re going through now is the aftershocks of the earthquakes.

“Just like with an earthquake, the aftershocks can be as dangerous as the quake itself.

“So if we put an enormous amount of resources against the earthquake and we don’t put enough against dealing with the aftershocks, then we risk the same kind of damage.

READ MORE: Millions of Britons want to install heat pumps — bit there’s a hitch

“Wouldn’t it be a failure that we’ve done everything we can do with the earthquake and the pandemic, then we still suffer anyway because we didn’t deal with the aftershocks.

“So to me, let’s deal with the aftershocks, we can’t just let it ride.”

In an effort to tackle the rising energy bills, Chancellor Rishi Sunak has launched a major £15billion package with around eight million of the most vulnerable households across the UK set to receive support of at least £1,200 this year.

Mr Jackson hailed these measures but warned that Government needs to be open to more such schemes.

He continued: “We really welcome the government’s support on energy bills, it’s a good example of what I’m talking about- by spreading it out.

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