London Daily

Focus on the big picture.
Friday, Oct 30, 2026

Energy bills: Customers can't carry cost of Ukraine war, boss says

Energy bills: Customers can't carry cost of Ukraine war, boss says

UK households cannot carry the cost of the Ukraine war which is set to push energy bills even higher, the boss of Octopus Energy has said.

Greg Jackson was speaking as UK households brace for average energy bills to reach a predicted £3,554 a year in October and £4,650 in January.

He called for the government to double its financial support or freeze the amount suppliers can charge for energy.

No 10 previously said there would be no new policy before a new PM is in place.

The new Conservative Party leader will be announced on 5 September and will face immediate pressure to tackle the nation's energy bills.

The current favourite, Liz Truss, has promised tax cuts and recently hinted at direct financial help for hard-pressed households.

Her rival, Rishi Sunak, has said he would introduce more targeted support for households, and has promised to reduce VAT on domestic energy bills from 5% to zero.

The upcoming jump in energy prices has prompted investment bank Citi to raise his forecast of UK inflation to 18% in early 2023.

Inflation - the rate at which prices rise - is currently at 10.1% and the Bank of England's target is 2%.

On Friday, the energy price cap - the maximum amount suppliers can charge customers in England, Scotland and Wales for each unit of energy - will be announced.

Energy prices have risen sharply because demand for gas increased when Covid restrictions eased while the war in Ukraine has disrupted supplies from Russia.

Mr Jackson, founder and chief executive of Octopus Energy Group, said: "You can't expect the energy customers, or indeed the retailers to carry the cost of a war."

Asked what the solution could be, he told BBC Radio 4's Today programme the government "could double the existing support package".

In October, all UK households will get a £400 discount on their fuel bills and some eight million low-income households will get an additional £650.

Plans to enable households to get discounts on electricity bills if they cut use at peak times are set to be announced by the National Grid in the next two weeks.


Mr Jackson also suggested a "tariff deficit fund" which would involve the government freezing the energy price cap roughly where it is.

The government would borrow money from banks to pay the difference between the wholesale cost and the price to the consumer while energy prices were high.

This money would be paid back when energy prices came down, he said.

Dale Vince, chief executive of renewable energy generator and supplier Ecotricity, told the BBC: "The government does need to intervene we shouldn't expect customers to pay the cost of this failure and the Ukraine war."

He said the problem pre-dated the invasion of Ukraine and there was a "systemic failure in the energy market".

But he said the deficit scheme Mr Jackson had outlined would force taxpayers to foot the bill over the next decade.

"The government simply needs to step in and pick up this cost like it did in the pandemic," he said.

"We need £40bn to get through this winter. That's 10% of what was spent during the pandemic and that's the only thing that will really sort this problem out."


This summer has seen forecasts, suggestions and a lot of political debate. What it has not seen is certainty.

On Friday, households will finally be told exactly by how much domestic energy bills will rise in October. Remember, individual bills will vary, depending on how much gas and electricity you use. But the percentage increase in the domestic energy price cap for England, Wales and Scotland will be official and expressed in clear terms.

Energy will be more expensive, but at least people will have some basis to plan for the financial hit.

That said, the uncertainty won't be over. What extra support, if any, that is provided by government won't be clear until a new prime minister is in place. Energy prices for the second half of the winter are also unclear.

Energy bosses say fundamental change in the sector doesn't come quickly, but help for householders facing soaring bills as the nights draw in cannot come quickly enough.

Meanwhile Bill Bullen, founder and chief executive of energy supplier Utilita,said that energy prices must be frozen at their current level.

"That's not going to be enough even still for those customers who are on low incomes and vulnerable, maybe have some medical dependencies so some extra help is going to be required," he said.

He added: "The reality is when you get up to £3,500 a huge number of homes won't be able to afford this."

Mr Vince said there needed to be an overhaul of how electricity prices were decided.

"The price of gas sets the price of electricity in our country and we should break that link - other European countries are looking to do exactly that," he said.

"We let global commodity markets set the price that we pay for gas from our own North Sea and we are paying up to 10 times more for that right now."

He added: "Half of the gas that Britain uses come from our North Sea if we price cap that we take away half the problem."

Newsletter

Related Articles

0:00
0:00
Close
Water pollution remains high despite £5bn investment
Regional Economic Divergence and Industrial Transformation
Technological Sovereignty and Regulatory Scrutiny
Fiscal Consolidation and Public Service Pressures
Automotive Industry Leadership Warns of Imminent Supply Chain Disruptions Following Recent European Trade Negotiations
High Court Delivers Landmark Ruling Affirming Strict Legal Protections for Corporate Data Privacy Against State Surveillance
Welsh First Minister Eluned Morgan Secures Additional Funding for Regional Transport Infrastructure and Rail Modernization
Scottish First Minister John Swinney Announces Major Green Energy Infrastructure Investment Package for Aberdeen
Department for Work and Pensions Proposes Sweeping Welfare Reforms to Incentivize Long-Term Unemployed Back into Work
Competition and Markets Authority Launches Formal Investigation into Artificial Intelligence Partnerships Involving Major Tech Giants
United Kingdom Foreign Secretary David Lammy Concludes High-Level Strategic Talks in Washington on Middle East Security
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected Surge in Emergency Admissions
Bank of England Governor Andrew Bailey Signals Cautious Approach to Interest Rate Cuts Amid Persistent Inflation
British Chancellor Rachel Reeves Finalizes Corporate Tax Overhaul Ahead of Autumn Budget to Fund Public Services
Automotive Manufacturers Urge Government Action as High Energy Costs and Global Supply Chain Disruptions Threaten Production
Metropolitan Police Issue Formal Apology Following Inadvertent Release of Confidential Information During High-Profile Investigation
Scottish Finance Secretary Shona Robison Unveils Devolved Budget Highlighting Housing and Public Service Adjustments
Energy Regulator Office of Gas and Electricity Markets Prepares to Remove Household Gas Standing Charges Following Treasury Mandate
Treasury Confirms Reversal of Planned Cash Individual Savings Account Allowance Reduction Protecting Twenty Thousand Pound Limit
Office for Budget Responsibility Revisions Predict Moderate United Kingdom Economic Growth with Elevated Inflation Pressures
Chancellor John Healey Delivers First Autumn Budget in Parliament Highlighting Temporary Bank Surcharge and Cost-of-Living Support
Met Office Issues Extended Forecast Highlighting Stable High Pressure Weather Patterns Across the United Kingdom
Scottish Finance Secretary Shona Robison Outlines Changes to Tax Thresholds and Residential Property Levies in Edinburgh
Financial Markets and Government Bond Yields Remain Stable Following Muted Reaction to Autumn Budget Measures
Defence Committee Chair Tan Dhesi Criticizes Budget for Delaying Critical Defence Spending Decisions to Next Year
International Monetary Fund Forecasts United Kingdom Economic Growth at One Point Three Percent for Year
Office for Budget Responsibility Assesses Fiscal Headroom Reduced to Fifteen Billion Pounds Following Global Energy Shocks
Chancellor John Healey Delivers First Autumn Budget Introducing Household Energy Support and Bank Tax Hikes
Aberdeen City Council Co-Leader Faces Binding Vote Challenge as Local Councillors Launch High Court Legal Battle
Housebuilding Across Scotland Falls to Eleven-Year Low Despite Government Declarations of a Housing Emergency
Former Prime Minister Gordon Brown Organizes National Innovation Summit in Manchester to Boost Regional Competitiveness
UK Government Faces Mounting Criticism Over Lack of Environmental Consultation During Artificial Intelligence Datacentre Expansion Talks
Greggs Announces Closure of Four Major Manufacturing Facilities Across Britain Resulting in Seven Hundred Forty Job Losses
British Retail Consortium Warns That Cumulative Employment and Regulatory Costs Threaten High Street Price Stability
Lloyds Banking Group Chief Executive Charlie Nunn Warns That Increased Bank Taxes Could Deter Long-Term Economic Investment
Ipsos Polling Reveals Seven in Ten Britons Expect Personal Tax Increases Amid Deep Public Economic Pessimism
Chancellor John Healey Delivers First Autumn Budget in Parliament Amid Tight Fiscal Constraints and Slower Growth Forecasts
United Kingdom Finance Monthly Review Highlights Rising Long-Term Borrowing Costs and Persistent Energy Price Pressures Across British Markets
Royal Marines Pioneer Rapid Autonomous Drone Operations During Major High North Exercise Involving NATO Allies
House of Commons Justice Committee Urges Chancellor to Align Prison and Courts Reform Ambitions With Concrete Budgetary Resources
Government Investigates Rapid Artificial Intelligence Datacentre Expansion Strategy Following Scrutiny Over Power Grid Demands and Planning Backlogs
His Majesty's Inspectorate of Constabulary Warns Third-Party Supplier Breaches Threaten United Kingdom Police and Fire Service Data
Number of British Businesses in Financial Distress Reaches Highest Level in Two Decades Ahead of Fiscal Announcement
Chancellor John Healey Prepares Autumn Budget Amid Intense Market Scrutiny Over Fiscal Headroom and Spending Pressures
Education or Indoctrination? The Growing Debate Over Religious Participation in British Schools
Germany's Vanishing Shopfronts: The Silent Collapse of the Businesses That Built Its Cities
Northern Ireland Executive Reaches Agreement on Public Transport Modernization and Cross-Border Rail Infrastructure Funding
Department for Energy Security and Net Zero Approves New North Sea Carbon Capture and Storage Industrial Clusters
Office for National Statistics Reports Stabilization in Private Rental Growth Across Major English and Welsh Regional Cities
United Kingdom Automotive Manufacturing Output Rises Moderately as Electric Vehicle Assembly Lines Expand in the Midlands
×