Octopus Energy CEO Proposes Scaling Back UK's £100 Billion Grid Plan Amid Demand Forecast Debate

Greg Jackson, chief executive of Octopus Energy, urged the UK Labour government to scale back its £100 billion electricity grid expansion programme by up to 80 per cent, stating that the planned infrastructure spending is excessive. Jackson argued that addressing underlying energy costs would be more effective than providing financial support to households facing higher bills.

'Before you talk about bailouts, you should be talking about how you slash the cost of energy,' he said in comments reported by GB News.

Household energy bills are forecast to reach around £2,000 in the coming months, a level still far below the £6,000 peak during the Ukraine crisis. Labour projections indicate electricity demand could rise by 50 per cent by 2035 and double by 2050, driven by the shift to electric vehicles and electric heating.

Jackson said these forecasts overstate expected demand, particularly during morning and evening peaks.

'We should be urgently reassessing spending plans for grid and networks and saying ‘We’re going to slash that by £50 billion, £70 billion, because we can run the electricity system without it’,' he stated. Data from Octopus Energy shows that households adopting electric vehicles increase overall electricity use by around 60 per cent, while peak-time demand rises by only four per cent.

Official projections, by contrast, estimate a 70 per cent increase in peak demand.

Network charges, which fund electricity infrastructure, currently cost around £166 a year for a typical household and could rise to £251 by the end of the decade. Analysts have noted these costs may drive higher energy bills by 2030, according to GB News.