Energy giants Octopus and British Gas clash over misleading heat pump pricing claims amid a growing UK green energy market
Octopus have said it is "hypocrisy" that their advert promoting heat pumps for £500 has to be taken down(Image credit: Getty Images)
As the UK heat pump market heats up, a clash between Octopus Energy and British Gas over “from £500” pricing has erupted into a full-blown row.
Octopus was recently reprimanded by the UK’s ad watchdog for promoting heat pumps for £500, a figure the ASA said was misleading.
Now Octopus is fighting back, accusing British Gas of using similar tactics, and filing a complaint of its own.
What the ASA found
Octopus has also promoted their Cosy Octopus scheme that offers free heat pumps to eligible homeowners(Image credit: Unknown)
The Advertising Standards Authority (ASA) ruled last week that an Octopus Facebook ad broke multiple rules.
It promoted installations “from £500,” but an investigation found that fewer than 6% of customers actually paid that amount when the ad ran, far below the 10% minimum required to make a “from” price claim.
The ASA also criticised the ad for failing to mention that the low price depended on receiving a £7,500 government grant through the Boiler Upgrade Scheme.
That funding is only available to certain households - including owner-occupiers replacing boilers, but those conditions weren’t made clear in the ad.
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In its ruling, the ASA said: “We had not seen sufficiently robust evidence that a significant proportion of consumers … could purchase a heat pump and have it installed … for £500.”
Octopus hits back at British Gas
Octopus has rejected the ruling and turned its focus on rival British Gas, claiming it also advertises heat pump installs “from £499.”
Octopus says it will now report British Gas to the ASA, accusing it of making similar claims without scrutiny.
A spokesperson for Octopus said: “This shows the breathtaking hypocrisy from these fossil fuel lobbyists. They logged this complaint against us, yet their biggest member – British Gas – also claims to install heat pumps from £499.”
British Gas, meanwhile, defends its pricing by offering a “lowest price guarantee” and promising refunds if the system doesn’t perform as expected. Managing Director Andrew Middleton said the company will only install a heat pump if it’s confident it will heat a home as well as a traditional boiler.
Price claims or power struggle?
The clash highlights a growing rivalry in the UK’s push to electrify home heating. With government grants helping bring costs down, both firms are racing for market share in what is expected to become a multi-billion-pound industry.
But the ASA’s ruling sends a clear message: green energy ads must be more transparent. Low headline prices may attract clicks, but without clear details on who qualifies, they risk misleading customers.
For homeowners, the takeaway is simple: ask for the full picture before committing. Government grants can help, but they don’t apply to everyone, and a £500 installation price is still the exception, not the rule.
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
