Source A: Octopus Energy Group
Octopus Energy Group Limited is a privately owned company which supplies gas and electricity to households and businesses, installs low-carbon technology in homes, and owns Kraken, a software platform which manages energy customers' accounts. The group was founded in the UK in 2016. In the year to 30 April 2025 its revenue rose 10% to £13 683 million, and it supplied 9.94 million customers across eight countries, compared with 7.95 million a year earlier.
In January 2025 Octopus Energy became the largest household energy supplier in the UK, with 24% of the market measured by number of meters. Its UK customers reached 7.6 million, and it accounted for 42% of all switches between household energy suppliers during the year. It has been named a Which? Recommended Energy Supplier for eight consecutive years and holds a Trustpilot rating of 4.8 out of 5.
Every customer account in the group runs on Kraken. The platform combines data from customers' smart meters with weather data to forecast how much energy customers will use, and the group adjusts its purchases of gas and electricity each day as the forecast changes. Kraken is also licensed to other energy suppliers, including EDF Energy, and to water and broadband companies. In September 2025 the group announced its intention to demerge Kraken as a separate company.
The group buys energy in two ways:
Fixed price contracts. For each customer on a fixed price, it buys the gas and electricity it expects that customer to use, in advance, for the whole length of the contract.
The standard variable tariff. The maximum price is set by Ofgem, the energy regulator, every three months. The group buys energy for these customers on a rolling basis which follows the method Ofgem uses to set the price cap.
The group tests its finances against a range of shocks, including a period of cold weather combined with a rise in wholesale prices. The spring of 2025 was the warmest in the UK on record, and in April 2025 its UK customers used 25% less gas than normal for the time of year.
Octopus Energy supports customers who are struggling to pay. It employs social workers in every one of its UK locations, gave energy credit to more than 90 000 customers in financial hardship through its Octo Assist Fund, and made home visits to fit thermostats, timers and draught-proofing. Throughout the year it kept its standard variable tariff below the price cap by reducing standing charges, at a cost of £57 million.
The group's stated aim is to make energy greener, cheaper and fairer. It installs heat pumps, including its own Cosy range, together with solar panels, batteries and electric vehicle chargers, and offers smart tariffs which reward customers for using electricity when it is cheapest. Of the group's total emissions, 95% come from the gas its customers use. It has committed to reach net zero emissions across its whole value chain by 2040.
In the year to 30 April 2025 the group made a net loss of £255 million, compared with a profit of £83 million in the previous year.
Source: Octopus Energy Group Limited, Annual Report and Financial Statements 2025
Octopus Energy Group's Kraken platform combines smart meter data with weather data to forecast how much energy its customers will use, and the group adjusts its purchases each day. In April 2025 its UK customers still used 25% less gas than normal for the time of year.
Analyse one way in which using this data might affect Octopus Energy Group's costs.
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