Greg Jackson, the founder and chief executive of Octopus Energy, has sparked a debate by suggesting that some households would accept an occasional electricity blackout in exchange for much lower energy bills. Speaking at an industry conference, Jackson argued against costly investments in the UK’s power grid that are adding to household bills.
Context of the Comments
Jackson made the remarks a year after Europe’s largest power outage left tens of millions of people in Spain and Portugal without trains, metros, traffic lights, ATMs, phone connections, and internet access. He noted that many households in Spain, where Octopus Energy has a growing business, would say they were happy to accept “the odd blackout” in return for electricity costs that are 25% lower.
Clarification on Blackouts
“To be really clear, I’m not advocating for blackouts, but if you asked Spanish consumers ‘would you accept the odd blackout in return for electricity costs that are 25% lower, or don’t have spikes, or a more reliable economy?’ enough of them would say yes,” Jackson said. He added that people would be “far less bothered” about a blackout now than in the past because they could continue watching things on their laptop during a power outage, thanks to built-in batteries that provide a couple of hours of power.
Home Batteries and Reliability
Jackson highlighted that home batteries, which are sold by Octopus Energy, are “so cheap now” that even people who need reliable electricity for medical equipment could tolerate a blackout. However, the widespread Iberian blackout claimed at least six lives, including two people with medical difficulties who died after being unable to run breathing equipment.
Grid Investment Debate
Jackson told delegates that the greater challenge in running a clean power system is controlling the cost of network investments. Octopus Energy has warned against grid investments that might prove unnecessarily expensive as new technologies emerge. A spokesperson for the company said: “Countries that have embraced cheap renewables and built in flexibility – like Spain – are seeing dramatically lower energy prices. Meanwhile, the UK risks doing the opposite: hardwiring in high costs with tens of billions of grid and network spending, without enough transparency on whether all of it is really needed.”
Renewable Energy and Reliability
Renewable energy critics initially blamed Spain’s reliance on wind and solar for the outage, but the official report attributed “multiple interacting factors” involving conventional power plants, renewables, and the power network. Speaking at the same event, Fintan Slye, chief executive of the National Energy System Operator, said that while there is expected to be a “step change” in electricity use, it “doesn’t go as far as blackouts.” He stressed that significant investments in the power grid are still needed to transmit electricity from generation sources to populated areas.
