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
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.
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