Octopus Energy, founded in 2015 by CEO Greg Jackson, now serves more than 12.9 million household accounts, representing nearly one in four British households. This achievement ends British Gas’s dominance, which began with the privatisation of the energy sector in 1986.
Factors Behind Octopus Energy’s Success
Tech-driven efficiency: CEO Greg Jackson credits the company’s investment in technology for enabling “rapid growth and outstanding service.”
Market turbulence: The collapse of over half of the UK’s small and medium-sized suppliers following Russia’s invasion of Ukraine left millions of households in need of a reliable provider.
Customer-centric approach: Octopus topped the latest Which? Survey, scoring 74% and earning five stars for customer service, while British Gas scored only 61%, with just two stars for value for money.
The rise of Octopus Energy has been fuelled by a combination of innovation, market disruption, and exceptional customer service:
- Market turbulence: The collapse of over half of the UK’s small and medium-sized suppliers following Russia’s invasion of Ukraine left millions of households in need of a reliable provider.
- Customer-centric approach: Octopus topped the latest, Which? Survey, scoring 74% and earning five stars for customer service, while British Gas scored only 61%, with just two stars for value for money.
- Tech-driven efficiency: CEO Greg Jackson credits the company’s investment in technology for enabling “rapid growth and outstanding service.”
British Gas’s Struggles Amidst Profitability
Despite reporting £750 million in profits in 2023, British Gas has faced mounting criticism:
| Metric | Octopus Energy | British Gas |
|---|---|---|
| Customer satisfaction | 74% (5 stars) | 61% (2 stars) |
| Value for money | High | Low (2 stars) |
| Complaint resolution | Efficient | Below average |
| CEO compensation | Not disclosed | £8.2 million |
British Gas’s underperformance in areas like smart meter rollouts, complaint handling, and value for money has left many questioning its ability to remain competitive.
Octopus’s Global Expansion
While reshaping the UK market, Octopus Energy has extended its reach to 26 countries and now serves 9 million customers worldwide. Dan Morris of Cornwall Insight described the milestone as the “biggest development in the domestic retail energy market since privatisation.”
Fixed Deals and the Energy Price Cap
Fixed-rate energy deals have started to return, providing options that are slightly below the price cap, which is projected to increase by 3% in April. Consumer groups are urging households to consider switching providers to secure better rates and improved service.
Recommendations for Energy Consumers
- Evaluate customer service: Firms like Octopus Energy excel in this area, while others, including British Gas and Ovo Energy, underperform.
- Compare fixed deals: With fluctuating price caps, fixed-rate plans may offer cost stability.
- Act on dissatisfaction: Emily Seymour, of Which? Advises, “If people are unhappy with their provider, we’d recommend shopping around… and switching to a supplier with better customer service.”
The shift in leadership underscores the growing importance of innovation, service quality, and adaptability in an increasingly competitive and regulated market. For consumers, this transformation presents an opportunity to demand better deals and higher standards from their providers.
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