The Government’s intervention in the energy market has been welcomed by Octopus chief Greg Jackson.
He praised Prime Minister Liz Truss’ decision to freeze energy bills at £2,500 per year for the next two years – with suppliers being compensated for the difference is soaring wholesale costs through Government borrowing.
Downing Street is also rolling out a six-month equivalent support scheme for businesses which are not supported by the price cap and have faced up to 500 per cent hikes in their energy bills.
Greg Jackson, chief executive and founder of Octopus Energy said: “It’s great to see this major support for households and businesses. Companies and government are now working through the details and customers should sit tight and wait to hear from their energy supplier. Nothing will change until 1st October and we’ll be in touch with everyone before then.”
The support packages are expected to dwarf the £70bn furlough scheme, with estimates of its overall cost rising above £130bn.
Octopus is the UK’s fifth largest energy supplier, home to over three million customers.
Proposals for a price cap freeze were first mooted by Scottish Power boss Keith Anderson this summer during meetings at Downing Street with the Government over easing household energy bills.
The calls for a price cap freeze had been widely backed by energy suppliers including Octopus, alongside the other Big Five suppliers and challenger firms.
Truss has also announced further policies to cut energy bills – such as temporarily suspending green levies and has also confirmed former Chancellor Rishi Sunak’s £15bn support package will be honoured.
The price cap will be hiked 80 per cent next month to £3,549 per year, with the cap expected to climb over £6,000 per year next spring – making the £2,500 limit increasingly helpful to households over the coming months.