London Daily

Focus on the big picture.
Monday, Aug 25, 2025

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
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
×