Greg Jackson, the boss of Octopus Energy, has been lobbying for reforms to energy pricing in the UK, a change which he has claimed will bring Scotland the cheapest bills in Europe.
Octopus, which provides gas and electricity for 12.9m households in the UK, is committed to green energy and the use of solar panels.
More than conserving carbon emissions, Jackson’s recent goal has been reforming the energy grid and, in doing so, saving money for everyday people.
Jackson has proposed the introduction of zonal or “locational” pricing, which would see the flat rate of energy costs replaced with fees dependent on local energy availability and demand.
Jackson argues that this payment structure would save money in two ways:
Firstly, people with a smaller local supply of electricity would not be forced to pay the same rates as others across the country. As Jackson explained on Twitter, “[it wouldn’t be sensible to] create ‘flat prices for housing’ by increasing prices everywhere to match London levels. But that’s what we do in electricity.”
Secondly, this would prevent people from paying for waste. As it stands, wind turbines are shut off for hours daily to balance the grid, costing almost £180,000 per hour, and paid for by people’s energy bills.
Because of Scotland’s large number of wind turbines, Jackson has claimed that Scotland would see the “cheapest electricity in Europe.”
However, some energy officials have argued against proposed changes. In February, 55 energy firms wrote to the government warning that changes would waste much of the £75bn budget allocated to moving away from fossil fuels, while not ensuring that prices are actually lowered.
With the results of Britain’s energy review expected soon and Jackson’s history of lobbying, it remains to be seen whether Britain pursues his suggested changes.
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