Octopus energy is the UK's fourth largest energy provider, which boss Greg Jackson says he started because people were "paying too much" on their bills. The boss has now stated that it has "never made a profit".
Mr Jackson was grilled on everything from standing charges to electric blankets on ITV's Martin Lewis Money Show. The energy boss slammed soaring standing charges as harmful and "unfair" saying the UK "has to build more renewable energy to escape high energy costs "once and for all".
Octopus has also been inundated with 100,000 requests for free electric blankets from struggling households, he said. Greg, who grew up in Saltburn, according to TeesideLive, in the North East with his mother working behind a bar and studying while on benefit.
He says his upbringing has given him empathy towards hard-up families according to reports. He founded Octopus Energy in 2015 and it's about to take over energy supplier Bulb, cementing its position as one of the UK's biggest players.
Greg revealed the UK's energy use is down 37% compared with last year crediting it to a "combination of warm weather and people "using energy saving tips". One viewer asked why providers are charging more when wholesale gas prices have dropped "massively - about 43% from the high of August".
Greg said: "There were days in October where there was so little demand that ships were turning up with gas and there was nowhere to store it. During that period, gas was incredibly cheap.
"What matters is will we have enough gas to meet our needs, heat our homes and do our cooking in the colder months of January, February and March?"
"Right now companies like ours are contracting for that gas to make sure we've got it. The price of the gas in those cold months, that we pay in the global market, is currently about six times higher. And the price of electricity is even higher. "
One person went on to ask why standing charges were so high "before we've even used any energy".
He said: "Standing charges are pernicious. They make it harder for people to save money by using less energy. Companies like ours have to pay rent and rates for gas pipes to your house - the standing charge covers that.
"About 20% of standing charges to pay for failed companies. Octopus is working with the energy regulator to push down standing charges."
Octopus is continuing its giveaway of electric blankets with Greg saying: "We priorities those in the most need, we've already had more than 100,000 requests this year. The UK is short on electric blankets.
"We had a stock of 30,000 so we can't meet everyone's needs."
Another person asked why, if Octopus is 100% green energy, do they still charge so much. "We've got a completely outdated energy market in UK," Greg replied.
"It costs the same - or sometimes more - to pay for energy from renewable sources rather than "dirty sources". The Government is looking at changing that.
If we move to renewables sooner as a nation, the prices will be lower. We can't carry on like this, we have to escape the colossal gas prices from global market."
Another viewer asked: ""Are you not ashamed for bleeding the country dry for shareholder profit?"
To which Greg replied: "Octopus has never made a profit. I started the company because I saw people were paying too much for energy.
"The reality is, we did a great job of that until the crisis. The war in Ukraine has pushed prices to record levels. But they were gong up before the pandemic.
"The people we have to buy the energy from, the global gas and oil giants around the world, are making the money. One made more profit in the first three months of this year than Ukraine's GDP - just to put it in perspective.
"We heed to build more renewable energy here to drive down the cost and escape from this once and for all."
On the matter if whether energy companies should pay windfall taxes on big profits, Greg said: "It's critically important the Government maintains the levels of support they have given to help energy users throughout the crisis.
"How the gov pays for that is a matter for them. It's very hard to justify a world in which we are paying for a cost of a war through our energy bills, customers are suffering and some companies are benefitting."
Octopus Energy's buy-out of Bulb is still "in process" and he added: "We'll announce how it will work for those customers affected as soon as we can."
