The £1 billion milestone
Britain reached the £1 billion mark on wasted wind payments last Saturday, two months earlier than last year. The bill is already £300 million higher than at the same point in 2025, and costs have more than doubled in just two years. The system operator NESO expects constraint payments to reach £3.2 billion over the next 12 months, with government forecasts warning they could hit £10 billion by 2030.
Why we're paying to waste wind
The root cause is simple: the grid cannot always move power from where it is generated to where it is needed. Wind farms in Scotland are regularly paid to turn off while gas plants nearer demand centres in the south are switched on. The most expensive single day so far came on 2 July, when £21 million was paid out in constraint costs.
A market fix that could cut bills
Greg Jackson, Founder and CEO of Octopus Energy, said: “The way Britain’s electricity system is run is bonkers – you wouldn’t grow tomatoes in your garden, only to bin them and buy expensive, imported ones from the shop. So why are we doing the same thing with electricity? We should use this wind to give people cheap power locally, instead of paying billions to throw it away. That’d be a welcome relief for families and businesses – it’s low hanging fruit that should absolutely appeal to a government which is focused on cost of living and devolution.”
Independent analysis by FTI suggests moving to a devolved electricity market could save a typical household up to £114 a year. To see how your current deal compares with cheaper options that reflect these system costs, check our gas and electricity comparison tools.
