- Octopus founder, Greg Jackson, will serve three years as a non-exec member of the Cabinet office board
- This comes as part of the government’s commitment to net zero policies
- Octopus was founded in 2015 and is now the UK’s largest energy supplier
Greg Jackson, founder of energy supplier Octopus Energy, has been appointed as non-executive member of the Cabinet Office board of the government by prime minister Sir Keir Starmer, in a move that could revitalise the idea of zonal energy pricing.
The renewable energy tech founder is expected to challenge government thinking on low-carbon technology and climate change throughout his three-year term, as well as having an influential role in shaping how future government policies will be implemented.
Earlier in the year ministers ruled out Jackson’s plans to divide the national energy market according to regional zones. This would have allowed energy users to pay varying electricity rates depending on their location and encourage renewables developers to build projects closer to where energy was needed.
Rachel Fletcher, director of economics and regulation, Octopus Energy, expressed her “deep concerns” around the pricing strategy.
“It’s deeply concerning that anyone would rule out a detailed and proven plan to reverse the spiralling costs of electricity, without any inkling of what an alternative might look like,” she said.
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“Zonal pricing would see significantly lower costs by 2028. Any alternative needs to be tested against that.”
The campaign was controversial as zonal pricing would have increased energy prices in the south-east of England and lowered them in Scotland. Jackson argued that prices reflecting local supply and demand dynamics would therefore encourage heavy electricity users to relocate to areas where energy is more affordable, as a result of renewable energy generation.
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In his response, Jackson said that he would “respectfully disagree,” with the minister’s decision.
In a tweet, he wrote: “Companies built windfarms where there’s no grid and you pay them to not generate. Soaring costs, locked in for years to come, and more on the way.
“Something must change. It’s brutal for families and crippling for growth.”
Now, however, his role is one of many that have recently been introduced in an effort by the government to bring in outside expertise in order to gain perspective on the impact of policy decisions.
Jackson, who set up Octopus in 2015, secured a valuation of £9bn for the company in under a decade after building its global reach. He also served as head of an independent Labour Party news forum, LabourList.
Both have helped him maintain strong links within Westminster and he met government ministers ten times in the twelve weeks following the 2024 general election.
Jackson said that with such a sense of civic duty, he was “really proud to have the chance to contribute to public service.”
He continued: “Finding ways to improve services without spending more is key to public services, the economy and our society, and if through business I’ve learned lessons on technology, delivery and organisation that can be useful to government, it’s an honour to share those.”
