Octopus issues major update to 1.5 million customers and 'closes chapter'

Octopus Energy has paid £3 BILLION to the government - concluding its Bulb bailot. The new Labour Party government has made £1.5bn profit from an unprecedented deal with Octopus and the agreement not only safeguarded jobs and customer service but also filled the public coffers at a crucial time.

The government temporarily stepped in to support Bulb when the business went bust in November 2021. A year later, it sold Bulb to Octopus Energy in an unprecedented deal that has proven hugely beneficial to taxpayers and billpayers.

Under this innovative deal, a wholesale agreement was put in place to cover the costs needed to hedge for Bulb’s customers. The deal with Octopus also included a profit-sharing arrangement that remained in place until the hedge money was fully paid by Octopus.

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The final payment was made on the 30 September 2024, concluding the bailout without loss to taxpayers or billpayers – initial estimates had projected costs could total £6.5 billion. Octopus ensured that every Bulb employee was offered a job – an impressive 94% chose to stay – while seamlessly migrating Bulb’s 1.5 million customers onto its systems within six months, minimising disruption to customers.

Greg Jackson, Founder of Octopus Energy, commented: “This outcome is a remarkable success story for taxpayers and billpayers. I’m proud that when other companies walked away or banged their fists on the table, Octopus worked hard to find a fair deal which saved the Treasury billions compared to alternatives. I hope this is a model for future deals between government and companies.”

The biggest chunk of the profit – £1.28bn – came from the wholesale arrangement. The government also received a further £19 million from the profit-sharing mechanism and £200 million in interest and is expected to receive another £20 million from the profit-share agreement in due course.