Wholesale gas prices have roughly doubled in three weeks amid instability in the Middle East, and Greg Jackson, co-founder and Chief Executive of Octopus Energy, the UK's biggest household energy supplier, says it is "very likely" that energy bills will rise from July. The energy price cap is set to fall in April due to government tax cuts on electricity, but Jackson warns that fixed tariffs and business tariffs are expected to climb in the summer quarter. He compares the situation to Groundhog Day — just three years after Russia's invasion of Ukraine triggered a fossil fuel crisis.
Consumer behaviour has shifted sharply in the three weeks since the crisis began. Octopus has recorded a 50% increase in rooftop solar sales, a 30% rise in heat pump sales, a 40% jump in heat pump orders, and a 30% increase in demand for electric vehicle charging points.
He says a dramatic shift is needed in the UK. China's approach to energy offers a stark contrast. Some 75% of all renewables being built globally are in China, more than half the cars sold there last year were electric, and the Chinese state oil company is planning for no petrol stations by 2040. He describes China's energy investment as "breathtaking" and sees "a lot of talk and no action" in Europe.
Octopus has raised around $3 billion in investment, but Jackson reveals that roughly $2.9 billion of that came from outside the UK. He blames pension and fund management regulations introduced around 2000, which he says have caused UK pension funds to cut their allocation to UK equities from about 40% to roughly 3%. The result, he argues, is that British pensioners receive lower returns while overseas investors capture the growth of British companies.
Presenter: Sean Farrington Producer: Olie D'Albertanson Editor: Henry Jones
00:13 Fliss and Sean set up interview 02:01 Greg Jackson joins the pod/ Iran war impact on energy. 05:07 Bills likely rising from July. 08:42 Consumer response. 50% solar surge, heat pumps. 14:40 Tesla & Musk's business entering the UK energy market. 16:07 Future of energy and cars. 19:18 Europe "torturing ourselves" over electrification.. 24:33 Overseas investment and UK consequences 27:57 Next election. Reform, Greens, and the future of energy policy 31:22 The entrepreneur. How Jackson became passionate about energy 36:45 AI and the next generation. Impact on young people's prospects 41:39 End of pod