Existing backers of privately held Octopus Energy, now ranked as Britain’s biggest supplier of home energy, have today pledged £625 million – $800 million – to accelerate its continuing global growth.
Shareholders including US former vice president Al Gore’s Generation Investment Management, pensions provider CPP, Tokyo Gas and long-term Australian client Origin Energy are stumping up the new cash. It values the unquoted British enterprise at £6.2 billion, a 60% advance on its last investment round in 2021.
Today’s announcement will, says Octopus, create 3,000 green jobs in the UK alone in 2024. Heat pumps lead the green technologies it has earmarked to benefit.
On Ofgem’s rankings this month for UK power and gas supply, Octopus’ combined share with newly absorbed Shell Energy is 21.3% of home accounts, against British Gas’ 20.4%.
Building Octopus Energy into a truly global clean energy giant is the goal behind today’s expansion, said founder Greg Jackson, pictured.
Its new ventures this year include its first in Africa, a partnership with actor Idris Elba in a wind and solar farm in Sierra Leone.
Octopus last month bought the remaining elements of Shell’s energy and broadband businesses in Britain & Germany. For Octopus Electric Vehicles the group secured a £550m loan guarantees from Lloyds Bank.
Founder Greg Jackson said: “Our focus on service and technology has not only driven us to market leadership in UK power, but we’ve built the UK’s leading specialist EV leasing business. In just two years we’ve almost doubled our renewable generation portfolio to £6 billion and tripled the contracted accounts on our technology platform Kraken from 17 million to 52 million“.
The former video games designer noted his enterprise has been awarded consumer watchdog Which’s coveted “Recommended” status an unprecedented six years in a row. According to consultants Bain, Octopus Energy is rated 44 points higher for service than the next best company.
Jackson noted 2023 saw the firm launch into manufacturing and installing its own heat pumps.
“With the renewed commitment seen at COP and our model proven, we will invest to accelerate our growth and create a truly global clean energy giant,” he declared.
Octopus’s spending on smart technologies dates from its founding in 2016, and the purchase of Kraken Technologies, developers of its core fulfilment and billing platform. It has since leased the service out to UK rivals E.On, EDF and Good Energy, as well as to international partners such as Origin and Tokyo Gas.
Helping British customers this winter, the firm says it is doubling to £30 million its OctoAssist Fund. That spend brings its support offered during three years of the energy crisis to nearly £200 million, it says, through a mixture of holding tariffs below Ofgem’s retail cap, offering holidays on standing charges, and sharing 50,000 electric blankets with homes in energy poverty.
Frank Calabria, CEO of Octopus’ Australian business partner Origin Energy said: “Octopus success since our initial investment in May 2020 has exceeded all expectations and cemented our belief in its unique capabilities and strong platform for future growth.”
At Canadian public pension provider CPP, its head of sustainable energies Bill Rogers said: “Octopus’ global footprint has scaled significantly, led by the company’s exceptional team, leading Kraken technology platform and innovative customer proposition. We’re delighted to further our investment.”
