Octopus and Kraken are swimming in murky waters

JKenH

I thought some readers may be interested in this piece on Octopus Energy. It is a long read.

TL:DR

Overall, do I think Octopus will fail within the next 12 months? No, and on that narrow basis it can reasonably be considered a going concern. But do I think this is a robust business with a secure long-term financial footing? Much less so, particularly given the clear lack of confidence its lenders have in it. And that matters because Octopus is now the UK’s largest energy supplier. If it were to fail, the consequences would dwarf those of Bulb, whose collapse required an expensive and disruptive Special Administration regime. When a company reaches this scale, “probably fine for the next year” is not a sufficient standard. Which is why Ofgem now requires regulatory capital and why Octopus’s failure to have it is all the more worrying.

https://watt-logic.com/2026/01/27/octopus-and-kraken-swim-in-murky-waters12245/

born_again

Thought Kraken was being sold off

https://www.bbc.co.uk/news/articles/c1w9wxdl8xvo

MattMattMattUK

Sounds very much like hyperbolic scaremongering for clicks to me.

victor2

Kraken appears to be the only profitable part of the organisation…

Scot_39

Didn't the govt just invest £25 million in Kraken.

debitcardmayhem

https://forums.moneysavingexpert.com/discussion/comment/81857100#Comment_81857100

Yes but but that’s a pittance compared to the reported valuation. Not sure what the government hope to achieve.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/81857105#Comment_81857105

Positive headlines of "investment".

tfhnota

Surely the point is that the Kraken IPO will leave Octopus with plenty of capital to satisfy Ofgem. If Octopus is swimming in anything it will be easy cash! No idea why the government has bunged in 25m quid, perhaps they will end up owning the retail energy part of Octopus (once all the easy dosh has gone to the shareholders) for free and paying Kraken a small fortune each month for the software?

Netexporter

I imagine the government is interested in Kraken for running complex organisations; the NHS perhaps? I gather Kraken are part of a consortium to sort out the mess when Thames Water finally wring out every penny they can for their management and shareholders.

squirrelpie

I suggest everybody reads Kathryn's article before posting more comments.

victor2

https://forums.moneysavingexpert.com/discussion/comment/81857413#Comment_81857413

And bear in mind it's just one person's opinion...