Octopus Energy has issued a £200 bill discount message to customers ahead of Andy Burnham becoming Prime Minister. The new MP for Makerfield became Labour leader on Friday and is set to become PM on Monday.
Potential Savings for Households and Businesses
Labour Party leader Mr Burnham can slash household energy bills by almost £200 a year by fixing Britain’s broken electricity market, Octopus has said. Every household could save £190 a year on electricity bills if the government brought in wholesale market reform and moved levies into general taxation, Octopus stated. Businesses and industry could save an additional £6bn a year through market reform – unlocking total savings of £83bn by 2050.
Long-Term Benefits and Timelines
Market changes would unlock £30bn in savings on future grid upgrades by 2050, with a further £20bn from smart grid flexibility. The levies could be reformed almost immediately. Reforming the wholesale market could be done by 2029 – delaying the move would see families and firms paying more for longer.
CEO Statement
Greg Jackson, Founder and CEO of Octopus Energy, said on Friday (July 17): "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."
