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High bills warning as grid can’t cope with wind power surges
The Conservatives warn that rising costs from balancing the electricity grid could add to household energy bills, arguing that Britain’s grid cannot handle surges in wind power. They say the Government should lift its ban on new North Sea oil and gas licences to help bring down energy costs.
They forecast the balancing charge will rise from £12.49 to £27.06 per megawatt hour between April and September 2027, a projection they say increased by a quarter in four weeks. In September, a record 1.8 terawatt hours of wind power was constrained off, while balancing costs reached £553 million, compared with a £455 million benchmark. The Department for Energy Security and Net Zero says it is addressing grid delays through investment and planning reforms.
In short
- Conservatives warn grid balancing costs will push up bills.
- The forecast charge rises to £27.06 per megawatt hour in 2027.
- Government says investment and reforms will tackle grid delays.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The Conservatives’ case is that when the grid cannot move or store wind power where it is needed, paying generators to curtail output and balancing supply adds avoidable costs that may ultimately reach consumers. They argue that expanding domestic oil and gas production could strengthen energy security and ease price pressures while grid infrastructure catches up.
The case against
The Government’s case is that these figures point to delays in grid connections and infrastructure, which can be tackled through investment and planning reform without abandoning the shift to cleaner power. New North Sea licences would not necessarily lower household bills, since oil and gas prices are set in wider markets, while building more wind alongside a stronger grid could reduce exposure to fossil fuel price swings over time.
Explained simply
Britain’s electricity grid carries power from generators to homes and businesses. Wind farms produce more electricity when the weather is windy, but the grid must keep supply and demand balanced at every moment, so some wind generation may be switched off when the network cannot carry it where it is needed.
The costs of making these adjustments are known as balancing costs and are paid through the electricity system, with potential effects on bills. The Conservatives argue that more North Sea oil and gas licences could help reduce energy costs, while the Government says investment and planning changes are intended to address delays in expanding the grid.