Octopus Energy Says Andy Burnham’s Leadership Could Slash Energy Bills by £200

As Andy Burnham steps into leadership as the new Prime Minister, Octopus Energy is spotlighting a significant opportunity to reduce energy costs for British households. The newly appointed Labour leader, who represents Makerfield, could play a pivotal role in reforming the country’s energy market and cutting annual electricity bills by nearly £200 per household.

Octopus Energy reports that a combination of wholesale electricity market reform and shifting levies into general taxation could save consumers an average of £190 each year. Beyond households, the benefits extend to businesses and industry, potentially saving an additional £6 billion annually. Over the long term, these changes could unlock total savings of £83 billion by 2050.

The reforms would also reduce the financial burden of future grid upgrades, projected to save £30 billion, alongside an extra £20 billion coming from smarter grid flexibility initiatives.

The company emphasizes that levy reforms could be implemented immediately, while wholesale market changes are achievable by 2029. Delaying these reforms risks prolonging high costs for families and businesses alike.

Greg Jackson, Founder and CEO of Octopus Energy, said on 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 previously without an alternative plan, and continuing on the current path will mean rising bills for years. Reversing this would align us with many OECD nations, cutting costs while supporting clean energy goals.

“Such reforms would enable us to better harness wind energy, reduce wasteful practices—like batteries charging and discharging at inappropriate times or interconnectors importing electricity unnecessarily—and eliminate excessive payments to gas plants for grid balancing.”