EDF and Octopus partner to make electricity pricing fair

Two of the UK’s largest energy suppliers, Octopus Energy and EDF have teamed up to introduce Electrify Britain, a campaign focused on slashing energy bills.

The initiative advocates for policy changes to lower household electricity costs by reducing policy charges, particularly burdensome on electricity bills compared to gas.

EDF and Octopus Energy advocate for fairer electricity pricing by reducing policy costs, which currently constitute approximately 17% of electricity bills compared to 6% for gas bills.

They propose reallocating these costs through measures such as general taxation and shifting some burdens to gas, while ensuring targeted support for vulnerable customers unable to transition to electrification.

It aims to phase out gas boiler installations in new homes in favour of well-insulated, electric-centric housing.

Electrify Britain stresses the economic benefits of electrification, highlighting that homes equipped with heat pumps can save hundreds of pounds annually compared to gas boilers, and electric vehicles (EVs) are significantly cheaper to run than petrol cars.

Addressing climate concerns, the campaign targets the sectors responsible for a substantial portion of UK emissions – 23% from transport and 15% from domestic heating.

Greg Jackson, Chief Executive Officer of Octopus Energy said: “There’s been so much focus on electrifying generation, but not enough on electrifying end use, where customers can make significant savings.

“Electric cars on a smart tariff cost seven times less per mile than a petrol car. People with heat pumps usually pay less than those with gas boilers and they rate their heat pump higher. It’s time for us to seize the benefits of electrification for British customers.”

Simone Rossi, Chief Executive Officer of EDF in the UK, added: “We are launching a joint campaign because there is no time to wait. Britain’s energy market is still fragile to external shocks and at the same time, we are seeing the impacts of climate change.

“We need more electricity but less carbon dioxide, we need to Electrify Britain.

“The first priority is to make electricity pricing fair by rebalancing policy costs, and the second is to ensure new homes are green and electric from day one. The future is electric, and we need to act now.”