Britain is still paying power stations to switch off

Energy Secretary Miatta Fahnbulleh said Britain still pays generators to cut output because the grid cannot move their power. Fahnbulleh made the admission in a speech at Energy UK’s annual conference in London on Wednesday (14 October).

“We have renewable power available in a system that still pays generators to turn down their output because the network cannot always use or move that power efficiently,” said Fahnbulleh.

These constraint payments happen when the network cannot carry electricity from where generators produce it to where homes and businesses need it.

Fahnbulleh said Great British Grid, which the Prime Minister announced at his party’s conference, would tackle the problem.

“It will enable the vital grid upgrades needed after decades of underinvestment, helping to reduce constraint costs and meet rising electricity demand,” said Fahnbulleh.

“Great British Grid will provide additional public investment and dedicated leadership, working alongside existing network operators and private investors,” she added.

Fahnbulleh also said viable projects and expanding businesses remain stuck waiting for grid connections.

“We cannot electrify industry if businesses cannot get the connections they need,” said Fahnbulleh.

She told the conference that the government has unlocked £100 billion of private investment in clean power in two years.

The government has also consented enough clean power to supply over 20 million homes, according to Fahnbulleh.

Britain delivered 189 terawatt hours of clean power last year, and clean sources produced almost two-thirds of the country’s electricity in 2025.

Fahnbulleh said Britain’s exposure to volatile global fossil fuel markets remains one of the main reasons for rising energy prices.

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