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Ofgem says the main driver of the increase in the energy price cap is the increased cost of switching off wind farms. Critics argue that the cost of “wasted wind” will only increase. NESO predicts that balancing costs will rise to almost £4 billion by 2030.
The figures are embarrassing for Ed Miliband, the UK’s Secretary of State for Energy Security and Net Zero, who has promised to cut household bills by £300 a year by 2030.
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The following is paraphrased from the article ‘Wind farms to blame for rising energy bills, says Ofgem’ published by The Telegraph on 27 August 2025.
Ofgem has said the energy price cap will increase more than expected, from £1,720 per year to £1,755 in October. The price cap is usually largely driven up or down based on the wholesale costs of energy, but this time it’s different.
“[Ofgem] said the 2pc rise was driven by the amount of money being spent on switching off wind farms in remote areas when the network is too congested to transport the power to where it is needed,” The Telegraph said.
The cost of switching off windfarms is part of what is known as “balancing costs.” Balancing costs are the expenses incurred by the National Electricity System Operator (“NESO”) to ensure that electricity supply matches demand in real-time, as electricity cannot be stored economically in large quantities. This is achieved through the Balancing Mechanism, where the NESO pays generators to increase output or pay them to reduce output when supply exceeds demand.
The October price cap increase will add around £1.23 per month to bills, and is expected to worsen as the UK spends more on switching off wind farms and firing up alternative power sources, such as gas plants. An estimated £815 million has been spent so far in 2025 switching off wind farms, up by more than a quarter compared to the same period just a year earlier. And critics argue that the cost of wasted wind will only increase, with NESO predicting the bill to rise to almost £4 billion by 2030, which could rise to as much as £8 billion[1] if grid upgrades are not delivered on time.
“The numbers are embarrassing for [Ed] Miliband, the Energy Secretary, as he pushes ahead with plans to build more wind and solar farms across the country,” The Telegraph said.
Adding, “On Wednesday, the Government blamed October’s higher bills on the ‘fossil fuel penalty’ being paid by households, with gas prices still above the levels seen before Russia’s invasion of Ukraine.”
The Conservatives have criticised the Government’s response to the rising energy bills, with the shadow energy secretary, Claire Coutinho, stating that the bill rises are due to balancing costs and rising standing charges, rather than the “fossil fuel penalty” cited by the Government.
The Energy Minister, Michael Shanks, has defended the Government’s mission to transition to clean, homegrown power. But critics argue that this will not address the immediate issue of rising energy bills and that the Government is not interested in cutting bills or telling the truth about the causes of the price increases.
Energy Bill Increases to Coincide with Tax Increases
Ofgem has identified two major factors contributing to the increase in energy bills: balancing costs associated with wind farms, as mentioned above, and a separate levy to fund the Government’s Warm Home Discount scheme, which adds £1.42 per month to the price cap.
The Warm Home Discount scheme, which provides a £150 discount to vulnerable households per year, has been expanded to include an additional 2.7 million households.
The Telegraph quoted Craig Lowrey of Cornwall Insight, who said: “The rise in bills, however small it may look on paper, will feel very real for households as we head into the colder months.
“The increase in costs is in part due to the widely supported expansion of the Warm Home Discount. This will be a lifeline for many of the 2.7 million additional households now eligible for support, but for those still facing high bills, it will offer little comfort. The reality is, when we give more help to those who need it most, we all end up sharing the cost.”
The rise in energy bills is expected to coincide with the Chancellor’s Budget, in which taxes are likely to be raised, putting further pressure on households that are already struggling with inflation and the cost-of-living crisis.
Experts, including Andy Prendergast, GMB national secretary, and Sam Richards, chief executive of Britain Remade, are warning that any increase in energy prices could have a significant impact on household budgets, particularly for the poorest in society who should not bear the biggest burden for saving the planet.
[1] Note:
The Telegraph has amended its article by deleting the statement about the potential rise of balancing costs to £8 billion.
“According to the National Energy System Operator, the bill is expected to rise to almost £4bn by 2030 – but could rise to as much as £8bn if grid upgrades are not delivered on time.”—The Telegraph, archived 27 Aug 2025 at 15:10:28 UTC (or 4:10 pm UK time)
“According to the National Energy System Operator, the bill is expected to rise to almost £4bn by 2030.”—The Telegraph, current version as of 28 August 2025.
Featured image: Wind turbines messing up our oceans and harming the life they support. Taken from an article to promote the proliferation of these monstrosities: ‘How the UK’s Offshore Wind Projects Pave the Way to Net Zero’ published by Global Energy Talent Index on 6 July 2021
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Categories: Breaking News, UK News