Greg Jackson, Octopus Energy Group CEO, said "2022 will be tough in energy." Image: Octopus Energy. Octopus Energy Group is expecting to take a £100 million hit from the energy crisis, the company announced alongside its FY20/21 results.
It has set aside £2.5 million in additional funding to help customers ahead of prices jumping substantially when the price cap is reset.
High wholesale prices driven by a gas shortage in Europe has already led to 28 suppliers folding in 2021, and is expected to lead to in April. Ofgem is expected to announce the level of the new price cap next Monday (7 February).
“2022 will be tough in energy, but we will fight for customer interests and work with government and industry to find solutions which may mitigate the issues for customers whilst doubling down on the investments in technology, growth and renewables which will help avoid such crises in future”, said Greg Jackson, CEO and founder of Octopus Energy Group.
Jackson is a proponent of creating a £20 billon commercial loan scheme, which suppliers could use to protect customers from soaring bills.
Others are calling for a in the short term, or a – who have seen their profits jump as the gas price increased by around 500% in 2021.
Kraken sees growth of 584% amid strong financial results
During the financial year 2020 to 2021, which ended on 30 April 2021, the Octopus Energy Group’s revenue increased by 62%. It grew from to £2.01 billion, and is expected to continue along the same trajectory during the FY21/22 period to reach nearly £4 billion despite challenging conditions in the retail market.
This was particularly bolstered by the continued growth of the company’s Kraken Technologies arm, with the software licensing business growing by 584% over the year. As such, its revenue increased from £10.2 million to £69.4 million, making an operating profit of £46 million or £60 million EBITDA excluding tech amortisation charges.
Octopus Energy Group made substantial investments into technology during the period, including acquiring Configurable, ) and Smart Pear. In total, the company invested £231 million into new business arms and technology during the year ending April 2021.
Through licensing agreements with the likes of , and , Kraken now serves nearly 25 million energy accounts globally. In the UK, around 45% of the population is expected to be on the software platform once customer migrations have all been completed.Meanwhile KrakenFlex – which is […]