Octopus boss Greg Jackson is urging new PM Andy Burnham to overhaul the electricity market and move levies into general taxation, reversing the previous government’s decision.
New independent analysis by FTI, commissioned by Octopus Energy, shows overhauling the market and introducing a system that is already used successfully in many OECD countries would cut the bill of every home and business in the country, with a typical household saving up to £114 a year.
There could be further savings of £75 a year on electricity bills if the government shifted levies into general taxation, with higher earners picking up more of the cost through the tax system.
Businesses and industry could save an additional £6 billion a year through market reform – unlocking total savings of up to £83 billion by 2050, according to Octopus.
Greg Jackson, Founder and CEO of Octopus Energy, said: “The new Prime Minister has a golden opportunity to change the direction of energy bills, boosting electrification and slashing costs for families and businesses.
“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. Reversing that will put us in line with many OECD countries, cutting costs for everyone without sacrificing clean energy ambitions.
“Indeed, it’ll enable us to get more out of wind farms and pay less, and end the chaos which currently sees British batteries charge when they should discharge, interconnectors import electricity when we have surpluses and export when we have none to spare, and pay eye-watering amounts to gas plants to try to balance this.”
