The chief executive of British Gas, a major player in the energy industry, has launched a scathing criticism against Octopus, a key competitor, suggesting that it should be barred from acquiring new customers. Chris O’Shea expressed strong disapproval of what he deemed as insufficient regulatory measures by Ofgem to prevent supplier insolvencies.
This rebuke follows Octopus surpassing British Gas as the largest household energy provider in the UK six months ago, despite being a relatively young company founded just a decade ago. O’Shea also condemned customers who default on payments, emphasizing the unfair burden placed on responsible payers.
The energy sector witnessed nearly 30 supplier collapses due to a spike in wholesale gas prices following Russia’s invasion of Ukraine in 2021, leading to substantial financial losses for surviving firms. In response, Ofgem implemented new financial safeguards in April to mitigate potential market shocks.
While Octopus, now the top energy supplier in the UK, was among the suppliers that initially failed to meet the financial requirements, British Gas complied with the regulations, setting aside around £900 million in funds. O’Shea urged Ofgem to enhance its oversight, expressing concerns about systemic failures and advocating for stricter penalties for non-compliant suppliers.
British Gas reported a stabilization in customer numbers after halting customer attrition, with a slight increase to 7.5 million customers. The company is striving to recover from recent controversies, including criticisms of its debt collection practices. Centrica, British Gas’s parent company, released half-year financial results indicating a decline in profits attributed to reduced demand due to favorable weather conditions.
In response to these developments, an Octopus Energy spokesperson criticized British Gas for prioritizing self-interest over customer service, highlighting their compliance with regulatory standards and resilience during the energy crisis. The spokesperson emphasized Octopus’s commitment to innovation, job creation, and customer satisfaction, positioning the company as a positive force in the energy market.