Octopus Energy has been valued at more than the owner of British Gas after the challenger provider received a $600m investment from a fund run by Al Gore, the previous US vice-president.
Generation Investment Management, the clear vitality fund he arrange in 2004 and nonetheless chairs, is taking a 13pc stake in Octopus to assist it develop and provide more renewable energy.
The investment means the non-public company is now valued at £3.3bn – £300m more than Centrica. Its stock market worth has declined by nearly three quarters within the six years since Octopus was based by Greg Jackson, who stays chief government.
Octopus is on the forefront of a band of challengers who’ve taken a couple of quarter of the vitality market from suppliers reminiscent of Centrica and EDF. Its Kraken expertise has additionally been licensed to rising numbers of rivals.
Octopus consolidated its position over the weekend when it picked up 580,000 prospects from failed provider Avro Energy – certainly one of a number of smaller challengers struggling to outlive attributable to hovering wholesale costs linked to a worldwide crunch in provides of pure gasoline.
Mr Jackson mentioned the troublesome state of the UK vitality market highlighted the necessity for investment in renewable vitality sources.
“Three years in the past, the administration crew of Octopus Energy met to debate progress plans for our fledgling company. We watched An Inconvenient Sequel [Gore’s documentary on climate change] and have been impressed to speed up and broaden our mission to make vitality greener sooner, cheaper, throughout the globe,” he mentioned.
“Being backed by Generation, co-founded and chaired by Al Gore, enables us to make that dream come true.”