Octopus Energy

Octopus Energy Group

Company type	Private
Industry	Renewable energy
Founded	August 2015 (2015-08)
Founder	Greg Jackson
Headquarters	London , United Kingdom
Area served	United Kingdom, France, Germany, Italy, Spain, Australia, Japan, New Zealand, United States
Key people	Greg Jackson (CEO)
Products	Electricity and gas supply, renewable energy generation, energy software platforms
Parent	Octopus Group
Website	octopus.energy

Octopus Energy Group is a UK-based company specializing in renewable energy, established in 2015 with financial support from Octopus Group, a British asset management organization. Its headquarters are located in London, and it operates internationally across the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States. Octopus holds the position as the largest supplier of domestic electricity and the second largest provider of domestic gas within the UK.

The group encompasses various branches including Octopus Energy Retail, Octopus Energy for Business, Octopus Energy Services, Octopus Electric Vehicles, Octopus Energy Generation, Octopus Heating, and Kraken Technologies. Additionally, it backs the independent nonprofit think tank Centre for Net Zero and delivers software platforms to other energy providers.

History

Founded in August 2015 as a subsidiary of Octopus Capital Limited, Octopus Energy began its commercial operations in December 2015. Greg Jackson is the company's founder and serves as its chief executive officer.

By April 2018, Octopus had grown its customer base to 198,000 and secured an energy supply agreement with Shell. Later that year, after Iresa Limited ceased operations under Ofgem's "supplier of last resort" mechanism, Octopus acquired 100,000 of its customers. The company also took over SSE’s supply contract for M&S Energy and purchased Affect Energy, gaining an additional 22,000 customers.

In 2018, Hanwha Energy Retail Australia chose the Kraken platform developed by Octopus to support its launch into the Australian retail energy sector.

In August 2019, Octopus expanded its clientele by over 300,000 customers through a deal with Midcounties Co-operative. This included acquiring customers from GB Energy and Flow Energy and managing Co-op Energy accounts under a white-label arrangement.

As of January 2025, Octopus had been recognized as a "Recommended Provider" by consumer organization Which? for eight consecutive years.

In January 2020, Octopus acquired ENGIE UK's residential energy supply segment comprising approximately 70,000 customers. That same month saw the launch of London Power in collaboration with the Mayor of London.

Throughout 2020, Octopus completed two investment rounds totaling $577 million, making it the most heavily funded UK technology start-up that year. In November 2020, it acquired Manchester-based smart grid software firm Upside Energy (later renamed KrakenFlex) and established the not-for-profit Octopus Centre for Net Zero (OCNZ) to promote sustainable energy models and policy development.

CEO Greg Jackson revealed in February 2021 that the company operates without a traditional human resources department. In March 2021, the Financial Times ranked Octopus as the 23rd fastest-growing company in Europe. By July 2021, it was the sole energy supplier featured in the UK's Top 50 Customer Service Index at 17th place.

In 2021, Octopus launched the UK's inaugural research and development center dedicated to heat decarbonisation in Slough. This facility aims to train around 1,000 heat pump engineers annually while innovating new heating technologies.

In September 2021, following Avro Energy's collapse, Octopus was appointed Supplier of Last Resort and acquired its domestic customer base, increasing total customers to 3.1 million.

A partnership agreement signed in November 2021 with the Manchester city region focuses on achieving carbon neutrality by 2038.

In December 2022, Octopus expanded its solar energy capabilities by acquiring UK-based Zestec Renewable Energy.

During October 2022’s period of fluctuating energy prices, Octopus reached an agreement with the UK Government to take over Bulb Energy’s portfolio of 1.5 million customers. Government funding facilitated energy procurement for these customers throughout winter. As part of this deal, by July 2024 Octopus was projected to repay £2.8 billion to the government.

Marks & Spencer concluded its five-year collaboration with Octopus in February 2023; subsequently in April their approximately 60,000 M&S Energy customers were transferred to Octopus.

In September 2023, Octopus announced plans to acquire Shell’s household energy operations in both the UK and Germany. The transaction is expected to finalize by late 2023 and will expand its customer base to around 6.5 million. According to Ofgem data from April 2024, Octopus became the UK's largest electricity supplier by domestic customer count with a market share of 22%, while ranking second in domestic gas supply behind British Gas—representing a notable change since market deregulation began in the late 1990s.

In March 2024, Octopus secured a 50% ownership stake in Lintas Green Energy and completed full acquisition of solar and battery storage developer Exagen Group by September 2024 after holding a minority interest since August 2022.

Financial background

In September 2019, Octopus made its initial move abroad by acquiring the German start-up 4hundred for £15 million, gaining access to 11,000 customers.

By May 2020, Australian energy company Origin Energy secured a 20% ownership in Octopus through a A$507 million investment, elevating the company to "unicorn" status with a valuation exceeding £1 billion. Subsequently, in September, Octopus expanded into the US market by purchasing Silicon Valley-based start-up Evolve Energy for $5 million. This acquisition marked the beginning of a $100 million expansion plan targeting 25 million customers in the United States and 100 million worldwide by 2027.

In December 2020, Tokyo Gas invested approximately ¥20 billion ($193 million) to acquire a 9.7% stake in Octopus, valuing the company at $2.1 billion. The two firms established a joint venture with a 30:70 ownership ratio to introduce Octopus in Japan, concentrating on renewable electricity offerings. Origin Energy further contributed an additional $50 million to maintain its 20% shareholding.

August 2021 saw Octopus enter the Spanish market through the acquisition of green energy start-up Umeme, aiming to serve one million Spanish customers by 2027. In November of the same year, Octopus purchased Italian energy retailer SATO Luce e Gas, rebranding it as Octopus Energy Italy with an initial investment of £51 million and setting a goal to capture 5% market share by 2025. These strategic acquisitions extended Octopus’ footprint to 13 countries spanning four continents.

In September 2021, Generation Investment Management, co-founded by Al Gore, acquired a 13% stake for $600 million. This deal increased Octopus’ valuation to $4.6 billion and provided capital for technological advancements accelerating decarbonisation efforts.

By December 2021, a collaboration with the Canada Pension Plan Investment Board raised $300 million, pushing the company’s valuation close to $5 billion.

In January 2022, Octopus expanded into France by acquiring Plüm énergie, which had 100,000 customers, subsequently rebranding it as Octopus Energy France.

Most recently, in December 2023, existing investors contributed an additional $800 million, driving Octopus Energy’s valuation near the $8 billion mark.

Gas and electricity supply

As of March 2023, Octopus serves nearly three million residential and commercial clients.

In addition to traditional fixed and variable pricing plans, the company provides innovative tariff options enabled by the widespread deployment of smart meters nationwide. These include:

• Octopus Tracker – daily fluctuating gas and electricity prices that reflect wholesale market costs with clear disclosure of overheads and profit margins.
• Octopus Agile – electricity prices updated every half hour based on wholesale rates set one day ahead; prices can occasionally turn negative during periods of surplus generation and low demand.
• Octopus Go – discounted overnight electricity rates designed specifically for electric vehicle users.

In March 2019, Octopus collaborated with Amazon’s Alexa platform to enable customers using the Agile Octopus tariff to optimize their home energy consumption.

By August 2019, Octopus partnered with Midcounties Co-operative in a joint venture aimed at growing the UK’s community energy sector and encouraging decentralized electricity generation.

Brands

As of April 2025, alongside its core Octopus Energy brand, the company supplies customers under Co-op Energy and London Power brands.

Electricity generation

Initially, Octopus Energy procured gas and electricity through wholesale markets rather than producing it themselves. By 2019, the company had transitioned to sourcing all its electricity from renewable origins and launched a "green" gas tariff that included carbon offsetting. In July 2021, Octopus expanded its portfolio by acquiring its affiliate, Octopus Renewables, recognized as the UK's largest solar farm investor with additional involvement in wind energy and anaerobic digestion. At the time of acquisition, the company's generation assets were valued at more than £3.4 billion.

In October 2020, Octopus collaborated with Tesla Energy to introduce the Tesla Energy Plan, which allows households to utilize 100% clean energy from either solar installations or Octopus’s supply. This initiative also enables participation in the UK Tesla Virtual Power Plant network, designed to help balance electricity grid demand.

January 2021 marked Octopus’s purchase of two 73-meter wind turbines to support its 'Fan Club' tariff, a program offering local residents discounts up to 50% on electricity costs during periods of strong wind. Later in November 2021, Octopus revealed intentions to raise £4 billion to scale the Fan Club concept internationally, incorporating solar farms with the goal of serving 2.5 million homes by 2030.

Additionally, in November 2021 at COP26, Octopus Energy Group formed a partnership with Belgium’s Elia Group to develop an intelligent green grid spanning Belgium and Germany. Their KrakenFlex platform aims to integrate electric vehicles, heat pumps, and other technologies to assist with grid stabilization.

In January 2022, Octopus Renewables acquired the Broons/Biterne-Sud wind farm located in Brittany, France. By June of the same year, their fund management team secured development rights for the 35MW Gaishecke wind farm near Frankfurt in Germany.

By September 2023, Octopus Energy had taken a 10% ownership stake in a 731.5 MW offshore wind project near Vlissingen and later acquired a similar share in the 714 MW East Anglia One wind farm in April 2025.

In September 2024, Octopus Energy broadened its solar energy holdings by purchasing four projects from BayWa situated in Bristol, Essex, Wiltshire, and East Riding, collectively totaling a capacity of 222 MW.

Investment trust

Octopus Renewables acts as the investment manager for Octopus Renewables Infrastructure Trust, an investment trust established in 2019 that holds wind and solar assets throughout the UK, Europe, and Australia.

Electric vehicle charging

Originally launched as Electric Juice in 2020 and rebranded as Electric Universe in 2022, this service streamlines public EV charging access. By September 2022, it encompassed over 450 charging companies and provided access to more than 300,000 chargers across over 50 countries through a single card or app. Customers of Octopus Energy can consolidate their EV charging expenses onto their home energy bills.

Climate change

In 2019, Octopus initiated the 'Portraits from the Precipice' campaign aimed at raising awareness about climate change while promoting environmentally friendly energy plans. Exhibited at upwards of 5,000 locations, it became the largest digital out-of-home art installation globally. The campaign resulted in a 163% increase in customer sign-ups with an addition of 37,000 new clients and earned both the Marketing Week Masters award for utilities and the Energy Institute's Public Engagement award in 2020.

Solar power at COP26

In November 2021, Octopus sponsored Grace of the Sun, an extensive artwork created by Robert Montgomery featuring Little Sun solar lamps crafted by Olafur Eliasson and Frederik Ottesen. Unveiled at the COP26 in Glasgow, this initiative sought to encourage international policymakers to prioritize investments in renewable technologies such as solar photovoltaic systems to promote a sustainable future.

Kraken software

Octopus Energy licenses its in-house developed customer management platform, Kraken, which is hosted on Amazon's cloud infrastructure. The UK-based competitor Good Energy was the first to license Kraken in late 2019 for a three-year term to support 300,000 customers.

By March 2020, E.ON along with its subsidiary Npower secured a Kraken license to manage their combined customer base of 10 million. Two months later, E.ON successfully transitioned two million former npower customers onto its Kraken-powered E.ON Next platform, a strategic shift credited with contributing significantly to its financial recovery in the UK market. In May 2020, Australia's Origin Energy also adopted Kraken under license.

In November 2021, EDF Energy committed to migrating its five million customers onto the Kraken system beginning in 2023, which would increase the total number of accounts managed on Kraken worldwide to over 20 million. Kraken also maintains key strategic alliances with Hanwha Group and Tokyo Gas.

Amir Orad was appointed CEO of Kraken in August 2024. The following year, internet service provider TalkTalk integrated Kraken into its operations. By July 2025, reports suggested that Octopus was exploring a potential demerger of Kraken Technologies, with the business unit possibly valued at £10 billion.