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Britain’s energy bill crisis and the practice of paying firms to reduce power output

The UK government’s proposal to overhaul the nation’s electricity distribution system raises questions about its potential impact on consumer bills, with some wondering if it will lead to reduced costs or create disparities based on geographic location.

At 1am on June 3, a strong gust of wind sweeps across Scotland, ideal conditions for the Moray East and West offshore wind farms to operate at full capacity, generating enough electricity to power over a million homes, according to developer Ocean Winds.

Located 13 miles off Scotland's north-east coast, the wind farms boast some of the UK's tallest turbines, standing at 257m high, and are designed to harness the region's strong winds to produce significant amounts of renewable energy.

However, despite the favorable weather conditions, the wind farms are not operating at maximum capacity.

This is because the national grid, which was initially designed to distribute electricity from coal and gas plants near major cities and towns, often lacks the necessary capacity to transmit electricity generated by remote renewable sources.

As a result, the grid's infrastructure can become overwhelmed, particularly when renewable energy sources produce a surplus of electricity, leading to restrictions on the amount of power that can be fed into the system.

This limitation has significant implications for the overall efficiency and cost-effectiveness of the energy system.

Under the current system, companies like Ocean Winds receive compensation payments when they are forced to reduce their energy output due to grid constraints, effectively being paid not to generate electricity.

Jacket foundations for the Moray East offshore wind farm sit on the dockside waiting to be shipped out for installation from Nigg, UK, on 23 June 2020. — Ocean Winds was paid to turn down the output of its wind farms in the Moray Firth

On June 3, Ocean Winds received £72,000 in compensation for restricting output at its Moray Firth wind farms for a half-hour period, highlighting the frequency of such occurrences.

Meanwhile, the Grain gas-fired power station, located 44 miles east of London, received £43,000 to generate additional electricity, demonstrating the complexities of the energy market.

According to analysis by Octopus Energy, Seagreen, Scotland's largest wind farm, received £65 million in compensation for restricting its output 71% of the time last year, underscoring the scale of the issue.

The National Electricity System Operator (NESO) estimates that balancing the grid in this manner has already cost the country over £500 million this year, with projected costs potentially reaching £8 billion by 2030.

These costs are ultimately passed on to consumers, contributing to rising energy bills and challenging the government's commitment to delivering cheaper electricity through net zero initiatives.

In response, the government is considering a radical overhaul of the national electricity market, proposing the creation of smaller regional markets to improve efficiency and reduce costs.

However, the success of this approach is uncertain, and it may lead to unequal distribution of costs and benefits across different regions.

The proposal has sparked intense debate within the energy industry, with one senior executive describing it as the "most vicious policy fight" they have ever witnessed.

Critics of the net zero policy, including political opponents, are seizing on the issue to argue that the approach is flawed and expensive.

The Prime Minister has reportedly requested a review of the "postcode pricing" plan, which has been met with skepticism by some, raising questions about the government's willingness to implement such a significant change.

Energy Secretary Ed Miliband is facing mounting pressure, with his net zero policy under attack from various quarters, including the Tories, green politicians, and even former Prime Minister Tony Blair.

Reform UK has identified the policy as a potential weakness for the Labour government, with deputy leader Richard Tice stating that the next election will be fought on issues like immigration and net zero.

However, public opinion polls suggest that the cost of living, particularly rising energy prices, remains a more pressing concern for most people.

Miliband had initially argued that his aggressive clean energy policies would lead to significant cost savings, with estimates suggesting that the average electricity bill could be reduced by £300 by 2030.

Ed Miliband during the International Summit on the Future of Energy Security in London, UK, on 25 April 2025. — Ed Miliband's net zero policy is under attack like never before

Nevertheless, the potential for renewables to deliver lower costs has yet to materialize, with the benefits of clean energy not being fully passed on to consumers.

Despite renewables now generating over half of the country's electricity, the need for gas-powered generation to supplement the system remains, driving up costs.

The wholesale price of electricity is often set by gas, which tends to be more expensive, making it challenging for renewables to compete.

Proponents of the government's plan argue that regional pricing could help break the hold of gas on the cost of electricity, allowing for more efficient distribution of renewable energy.

In regions like Scotland, which boasts significant wind resources but a relatively small population, local pricing could enable the sale of excess energy to local consumers, potentially driving down prices.

On windy days, Scottish customers might even receive free electricity, according to the theory, as the surplus energy would be sold locally rather than being fed into the national grid.

Other areas with abundant renewable energy sources, such as Yorkshire and the North East, could also benefit from lower prices, attracting energy-intensive industries and boosting local economies.

An aerial view of Drax Bio mass power station in Selby, England, on 6 November. — The grid was built to deliver power generated by coal and gas plants near the country's major cities and towns

The availability of cheap power could transform the economics of industry, making the UK a more attractive location for businesses like data centers and manufacturing facilities.

While prices might be higher in areas like London and the south of England, supporters argue that the overall savings could be used to ensure that no one pays more than they currently do.

Additionally, higher prices in certain regions could incentivize the development of new renewable energy projects, reducing the need for long-distance energy transmission and the associated infrastructure costs.

Greg Jackson, CEO of Octopus Energy, argues that zonal pricing would make the energy system more efficient, slashing waste and cutting bills for every family and business in the country.

Chairman of Reform UK Richard Tice and party leader Nigel Farage speak at Church House, Westminster, on 10 June 2024. — Reform UK chairman Richard Tice, seen here with party leader Nigel Farage, says the next general election will be fought on immigration and "net stupid zero"

Research commissioned by the company suggests that the savings could exceed £55 billion by 2050, potentially reducing the average bill by £50 to £100 per year.

The proponents of regional pricing include NESO, Citizens Advice, and the head of Ofgem, with a House of Lords committee recently recommending the adoption of this approach.

However, some businesses involved in building and operating renewable energy plants oppose the move, citing concerns about the potential impact on investment and revenue certainty.

Tom Glover, UK chair of RWE, expresses concerns that changing the pricing mechanism could undermine contracts and make it challenging to secure funding for new projects.

He argues that the main cost of wind and solar plants is in the initial build, and that the price of the energy they produce is closely tied to the cost of construction and borrowing rates.

With the government expecting power companies to invest £40 billion per year in renewable projects over the next five years, even small changes in interest rates could have significant effects on the cost of renewable energy.

A photograph taken on 8 June 2023 shows a wind turbine at the Seagreen Offshore Wind Farm, under construction around 27km from the coast of Montrose, in the North Sea. — Seagreen, Scotland's largest wind farm, was paid £65 million last year to restrict its output 71% of the time, according to Octopus Energy

Glover warns that this could have dramatic consequences for the development of renewable infrastructure and the cost of the power it generates.

The potential risks and uncertainties associated with regional pricing have created a complex and contentious debate, with various stakeholders weighing in on the potential benefits and drawbacks of this approach.

Economist Stephen Woodhouse of AFRY notes that the added expenses associated with regional pricing could negate its potential benefits for power companies, which his firm has been studying.

The current economic climate, marked by high interest rates and rising material costs, such as steel, is already driving up the cost of renewable energy sources, leading to the cancellation of projects like the proposed wind farm off Yorkshire's coast.

Additionally, the National Grid is undertaking a significant investment programme, valued at £60bn over five years, to upgrade the country's energy infrastructure in preparation for a shift to cleaner power sources.

Keir Starmer and Ed Miliband visit the British Steel manufacturing site on 8 June 2023 in Scunthorpe, England.

This upgraded infrastructure will increase the capacity to transport electricity from the north to the south, potentially reducing the savings that could be achieved through a regional pricing system in the future.

Critics argue that implementing regional pricing would be a lengthy process, and that energy-intensive industries, such as British Steel, cannot easily relocate, which could lead to an unfair system where some customers pay more than others.

Greg Jackson of Octopus believes that power companies are resistant to change because it would impact their profits, stating that those who benefit from the current system are actively working to maintain the status quo.

However, power companies counter that Octopus, as the UK's largest energy supplier with seven million customers, has its own interests in the matter, including a sophisticated billing system that it licenses to other suppliers, which could benefit from changes to the pricing structure.

The timeline for meeting clean power targets is dependent on the construction of new wind farms and solar plants, making it essential to address the uncertainty surrounding the electricity market.

Companies involved in building these new energy sources are calling for clarity on the future of the market to ensure they can move forward with their plans.

A decision on the matter is anticipated within the next couple of weeks, with the outcome having significant implications for the industry.

An update was made to this article on 29 October 2025 to include additional information about wholesale pricing.

The BBC InDepth section provides in-depth analysis and reporting on key issues, offering unique perspectives and insightful content from across the BBC's platforms.

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Water Leak Affects 19th Century Artwork at Louvre Museum

The world’s most visited museum has been marred by a series of incidents, prompting growing scrutiny of its management.

The Louvre museum in Paris has experienced a significant setback due to a water leak that damaged a 19th-century ceiling painting, marking the latest in a series of challenges for the institution.

French gendarmes patrol in front of the Musee du Louvre and the Pyramide du Louvre

According to the museum, the water damage was discovered in room 707, also known as the "Duchâtel" room, on Thursday evening, with the room housing various artworks from the 15th and 16th centuries.

The leak, which originated from a heating pipe, was reportedly stopped shortly after midnight, and the only artwork damaged was Charles Meynier's The Apotheosis of Poussin, Le Sueur and Le Brun, a ceiling painting.

This incident occurred just a day after French authorities detained nine individuals, including two museum staff members, in connection with an alleged ticket fraud scheme.

In recent months, the museum's management has faced increased scrutiny following a string of high-profile incidents, including the theft of French crown jewels and damage to hundreds of books due to a leak.

The Louvre reported that Thursday's leak occurred near the entrance to the paintings department in the Denon wing of the museum.

Firefighters responded promptly to the incident, and the leak was brought under control within 40 minutes of its discovery.

On Friday morning, a painting restorer assessed the damage to Meynier's ceiling painting and found that it had sustained two tears in the same area, as well as lifting of the paint layer on the ceiling and its arches.

The damaged ceiling painting, which dates back to 1822 and is signed by Meynier, depicts renowned French painters Nicolas Poussin, Eustache Le Sueur, and Charles Le Brun surrounded by angelic figures in the clouds.

As a precautionary measure, rooms 706, 707, and 708 in the Denon wing were closed on Friday morning but are expected to reopen later in the day.

The chief architect of historic monuments visited the site to evaluate the condition of the ceiling and determined that there were no structural issues.

A union representative informed Reuters that scaffolding had been erected in the affected area to facilitate repairs.

The extent of the damage to the painting and the building, as well as the associated costs, have not been disclosed.

This latest incident is part of a series of challenges faced by the Louvre, which is the most visited museum globally, in recent times.

In December, a leak in the Egyptian department damaged between 300 and 400 items, mostly books, with the museum's deputy administrator, Francis Steinbock, acknowledging that the issue had been known for years.

The previous month, the museum had to partially close one of its galleries featuring Greek vases and offices due to structural weaknesses.

This incident followed a high-profile burglary on October 19, in which four individuals stole historic jewelry valued at €88 million, exposing significant security gaps at the museum.

The thieves used a stolen vehicle-mounted mechanical lift to gain access to the Galerie d'Apollon via a balcony overlooking the River Seine.

Several individuals have been arrested in connection with the theft, which is still being investigated by the French authorities.

The majority of the stolen items remain unrecovered, and the museum has since relocated some of its most valuable jewels to the Bank of France for safekeeping.

A report published by France's public audit body in October criticized the museum's excessive spending on artwork, stating that it had come at the expense of building maintenance and renovation.

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UAE Beats Canada in T20 World Cup Thanks to Sharma

The United Arab Emirates boosted their chances of reaching the T20 World Cup Super 8s after Aryansh Sharma’s unbeaten 74 helped secure a narrow five-wicket victory over Canada.

The United Arab Emirates has taken a significant step towards qualifying for the T20 World Cup Super 8s, thanks in large part to Aryansh Sharma's impressive unbeaten 74, which helped secure a narrow five-wicket victory over Canada.

A recent match saw the UAE emerge victorious against Canada, enhancing their chances of advancing to the Super 8s in the T20 World Cup.

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Russell Describes Red Bull’s Advantage as Highly Intimidating

Mercedes driver George Russell notes that Red Bull’s lead at the forefront of the Formula 1 pack has been particularly noteworthy, revealing a significant gap that has caught the attention of many in the sport.

As George Russell enters his fifth season with Mercedes, the team is gearing up for a new challenge in the 2026 Formula 1 season.

According to Mercedes driver George Russell, Red Bull's current advantage at the front of the pack is a significant concern, with the team's performance in the first pre-season test at Bahrain being particularly noteworthy.

Russell described the display of speed by Red Bull in Bahrain as a "wake-up call" for their competitors, highlighting the team's impressive pace in the first of two pre-season tests.

The British driver noted that Red Bull's lead is substantial, with a gap of around half a second to a full second per lap, which is a considerable margin in the context of Formula 1.

Russell expressed his surprise at the scale of Red Bull's advantage, stating that it is unsettling to see such a significant difference in performance, especially given Red Bull's history of producing competitive cars, even when their engine was not the strongest.

The 2026 season marks the most significant rule change in Formula 1 history, with new specifications for engines, chassis, tires, and fuel, which promises to shake up the competitive landscape.

As a result of these changes, energy management has become a critical aspect of the sport, with engines now producing approximately half of their total power output from the electrical component, and limited battery capacity.

Rivals have analyzed GPS data from Red Bull's power unit during the Bahrain test, revealing that the team can sustain electrical energy deployment for longer periods than any of their competitors.

This achievement is all the more impressive considering that Red Bull has established its own engine company from scratch to comply with the new regulations and has partnered with Ford.

Last season, Max Verstappen narrowly missed out on the drivers' title, finishing just two points behind Lando Norris.

Russell stated that his team had observed Red Bull's strength from the outset of the 'shakedown' test in Spain last month, and their performance has been consistently impressive.

He noted that on the first day of testing in Barcelona, Red Bull immediately demonstrated a significant advantage over their competitors, including Mercedes, Ferrari, and others.

Russell acknowledged that Red Bull's performance in Bahrain has further solidified their position as the team to beat, at least for the time being.

Looking ahead to the first race of the season in Melbourne, Russell predicts that Red Bull will likely maintain their advantage, given their strong showing in both Barcelona and Bahrain.

However, Red Bull technical director Pierre Wache has downplayed Mercedes' claims, suggesting that his team is not the benchmark, and instead, Ferrari, Mercedes, and McLaren are currently ahead.

Wache argued that Red Bull's analysis indicates they are behind the top three teams, contrary to the assertions made by Mercedes team principal Toto Wolff.

Ferrari driver Charles Leclerc believes that Mercedes is concealing their true potential and that Red Bull and Mercedes have posted the fastest times, followed closely by his own team.

The new cars have sparked a debate among drivers, with some enjoying the updated handling and ride, while others have expressed reservations about the changes.

On the second day of testing, Lando Norris and Max Verstappen disagreed on whether the new cars are enjoyable to drive, reflecting the mixed opinions among drivers.

Russell described the 2026 cars as "much nicer to drive" in terms of handling and ride compared to the previous season's cars, but noted that the engines are highly complex.

He cautioned against drawing conclusions too early, as the true challenges of the new engines and energy management systems will only become apparent at more demanding tracks like Melbourne or Jeddah.

Russell elaborated on a point made by Verstappen regarding the unusual driving styles required by the new engines, which demand careful management of energy recovery.

Drivers are having to adapt to unconventional techniques, such as using lower gears in corners to keep the engine revving and maximize energy recovery.

Russell provided an example from the Bahrain test, where he had to use first gear in a corner that would normally be taken in third gear, in order to maintain high engine revs and keep the turbo spinning.

He acknowledged that this approach can be counterintuitive and frustrating at times.

Russell used an analogy to illustrate the point, comparing it to driving a road car and being told to use first gear in a roundabout, which would be unconventional and unnecessary at normal speeds.

He emphasized that the car is not designed to handle such low gears in certain corners, but drivers are having to work around these limitations to optimize energy recovery.

Russell explained that the car's design is not suited for such low gears, but the need to maintain high engine revs and turbo boost necessitates this approach.

As a result, drivers are having to adapt their techniques to prioritize energy management over traditional notions of fast cornering.

Russell noted that the critical nature of energy levels in determining lap times means that driving around a corner in the fastest possible way may not always result in the best overall lap time.

In the past, drivers could focus on finding the quickest line through a corner, but now they need to consider the broader implications of their actions on energy levels and overall lap time.

Russell stated that drivers must now wait for a full lap to understand the impact of their decisions on energy levels, rather than being able to instantly assess the effectiveness of a particular line or technique.

Meanwhile, Aston Martin is reported to be around four seconds off the pace of the top teams, highlighting the significant gap they need to bridge to be competitive.

The 2026 Formula 1 cars have been on display in Bahrain, showcasing the new designs and technologies.

The sport has introduced new terminology, including "active aero" and "overtake mode," which reflect the changes brought about by the new regulations.

Russell has expressed his desire to compete directly with Verstappen, setting the stage for an exciting season of racing.

The 2026 season promises to be an exciting one, with the biggest rule change in Formula 1 history, a new generation of drivers, and a fresh wave of technological innovation.