The UK’s energy regulators are putting billions of pounds of green infrastructure investment at risk by overseeing an energy market which favours EU energy imports at the expense of home-grown schemes.

New analysis by RIDG (Renewable Infrastructure Development Group), a member company of RenewableUK, highlights the stark anomalies in how electricity generators access the market – with operators in Germany, France and the Netherlands able to export energy significantly cheaper than projects in the UK, because they pay very low transmission charges, or none at all.

Electricity generators in the UK pay transmission charges for the cost of building and maintaining the network, set by the regulator Ofgem and ultimately paid by consumers as part of their bills.

The analysis shows that on average, EU generators pay £0.46 per MWh in transmission system charges, while in Scotland the average this year is £6.42 per MWh. Move to the windy north of Scotland and the price spikes to £7.36 per MWh, with prices forecast to rise further still.

Commenting on the report, RenewableUK’s director of Future Electricity Systems Barnaby Wharton said: “The current approach to transmission grid charging is not sustainable if we want global Britain to become a bigger player in the international power market. If Ofgem is serious about supporting UK’s net-zero emissions target, it should change its approach to ensure we can take advantage of the bountiful natural resources we have. Ofgem needs to have a specific net-zero remit to ensure we maximise our zero carbon generation as a matter of urgency - and this should be addressed by Ministers alongside the Government’s forthcoming Strategy and Policy Statement for Ofgem.”

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