Ofgem announced on Monday that it has ordered a Scottish wind farm, owned by the French energy giant EDF Group, to pay a fine of £5.53 million for breaching energy market rules.
The breach has raised concerns over the adequacy of the UK’s grid capacity and its implications for consumer costs.
Commenting on the fine, James Alexander, Chief Executive Officer of UKSIF, highlighted the broader issue of constraint payments and their impact on consumer bills.
James Alexander said: “This is an exceptional case where license conditions have clearly been breached, but the fact is that the UK’s inadequate grid capacity costs the British public millions every year, and it’s only due to get worse.
“Even where license conditions are not breached, constraint payments are a rather embarrassing reminder that at a time when the UK needs desperately to reduce our dependency on oil and gas, we are essentially wasting the low carbon energy we are generating because of lack of infrastructure.
“Wind curtailment payments cost £590 million in 2023, adding on average £40 to consumer bills. These costs are set to more than quadruple to £180 by 2030. And worse still, our outdated grid is actively driving away the precious private investment that is needed to decarbonise the UK’s energy.
“Our own research in February showed that almost half (44%) of energy companies had found lack of grid connections were a barrier to them investing in the UK. The UK Government needs to act fast to fix the grid, or the cost of inaction will keep falling on the public.”
