UK Rules Allow Excess British Power Sold to France While Domestic Bills Rise

Excess electricity produced in parts of Britain is sold to France and other countries at low prices under existing market rules. Grid operators respond by running more expensive plants in southern England to balance supply, and the added cost is passed on to British electricity consumers.

Octopus Energy, the UK's largest gas and electricity supplier, said the arrangement will cost an average of £770 million per year between 2030 and 2050. The company warned that closer integration with the European electricity market could increase those costs further.

When wind generation exceeds local demand, particularly in Scotland and northern England, surplus power is exported because transporting it south and across the Channel costs more than the sale price. Grid operators instead pay to start additional plants in the southeast of England.

A government spokesman said the system is being reviewed to allow cheaper exports of surplus clean power and imports on low-wind days. The spokesman added that modernising trading rules would reduce the need to pay wind farms to curtail output or run costly domestic gas plants.

Shadow Energy Secretary Claire Coutinho said consumers should not pay for power created in Britain that is then sold abroad for profit. She stated that energy companies receive payment twice while consumers bear the cost. The next UK-EU summit on electricity market issues is scheduled for July 22.