Octopus Energy boss Greg Jackson has insisted his company could have made a profit last year but said that “now’s not the time”, after the retailer posted a £161 million loss.
Announcing its results for year ending 30 April 2022, the retailer said the loss was due to its decision to absorb £150 million in wholesale costs to keep its standard tariff low, taking a hit to its revenue and profits in the process.
Despite the overall loss revenue doubled from £1.9 billion to £3.9 billion.
Throughout the year Octopus’ retail arm increased the number of customers by 54% from 2 million to 3.2 million although since the acquisition of Bulb last December the company now serves almost 5 million.
Commenting on the results Jackson said: “We’ve helped guide industry and governments to navigate the short- and long-term challenges in energy and are playing our part at every level. It has never been more important to build a better, fairer energy system for all and Octopus Energy Group is truly leading the way.
“We could have made a profit, but now’s not the time – instead we chose to absorb £150 million of escalating costs on behalf of customers through prices and support funds, debt-forgiveness and increased service.”
Meanwhile the group’s technology arm Kraken posted an operating profit of £49 million which is up 10% compared to full year 2021, with Kraken also increasing its revenue by 66% from £69 million to £115 million.
Kraken made headlines in recent years after major legacy suppliers Eon and EDF announced they would be migrating their customers onto the platform, a move which was hailed at the time as a significant step for the sector.
In total 7.4 million energy accounts were migrated onto the platform, up 26% against the number migrated the year prior, meaning Kraken served more than 16 million customers by the year’s end.
Octopus also revealed it expects the total cost to the government of its Bulb acquisition to be around £260 million, compared to the £6.5 billion previously suggested by the Office for Budget Responsibility.