TL;DR - The Trap Explained
The simple version: You're paying levies on your bill to fund wind farms. Those wind farms now generate over half our electricity at near-zero cost. But because of how the market works, gas still sets the price for ALL electricity - including the cheap wind power. So you're funding renewables but never seeing the savings. And under the current system, you never will.

From SwitchInsights - part of SwitchPilot

Wind power just hit a record. 37% of UK electricity in November 2025. Coal is finished. Renewables are generating more power than ever.

Your bill? Still 45% higher than 2021. Still spiking every time gas prices move. Still unpredictable.

Here's what most people don't realise: you've been paying levies on your bill for over a decade to fund these wind farms. They're working. They're generating cheap power. And you're not seeing a penny of the savings.

Why? Three words: marginal pricing system.

It's how the UK electricity market works. And it mathematically guarantees that you will never benefit from cheap renewables - no matter how many wind farms we build.

This isn't a conspiracy theory. It's simply how the market is structured. Let us explain.

🔥 The Gas Paradox: Generation vs Price Influence
🌱 Renewables share of generation 50%+
🔥 Gas share of generation ~26%
💷 How often gas sets the price 97%
Gas generates just 26% of electricity but controls 97% of prices
Quick Context Already know this? Skip to the next section ↓

In 2022, gas prices went through the roof after Russia invaded Ukraine. Bills spiked. The government stepped in with the Energy Price Guarantee to stop bills hitting £4,279. Since then, prices have come down - but they're still 45% higher than 2021. The question is: with renewables now generating over half our electricity, why haven't bills fallen further?

Price Cap Journey (Typical Household)
2021
Pre-crisis
£1,138
Apr 2022
Crisis begins
£1,971
Oct 2022
EPG cap
£2,500
Jul 2024
Recovery
£1,568
Q1 2026
Today
£1,758

The Pricing System That Keeps Your Bills High

This is the important part. Once you understand this, everything else makes sense.

How UK Electricity Pricing Actually Works
1
Every 30 minutes, the grid needs to balance supply and demand.

The National Grid works out how much electricity the country needs right now, and asks power generators to bid for the work.

2
Generators bid based on their costs.

Wind farms bid low (£0-10/MWh) because wind is free. Nuclear bids medium (£60/MWh). Gas bids high (£90-150/MWh) because fuel is expensive.

3
The grid accepts bids from cheapest to most expensive.

Wind first, then nuclear, then gas - until there's enough power to meet demand.

4
Here's the catch: EVERYONE gets paid the highest accepted bid.

If gas is needed at all - even just 10% - then wind, nuclear, AND gas all get paid the gas price. This is called "marginal pricing."

The result? Wind farms that cost almost nothing to run get paid £90/MWh because that's what gas costs. You're paying gas prices for wind power.

Think about what that means. A wind farm generates electricity for nearly free. But because the grid also needs some gas to meet demand, that wind farm gets paid the same rate as gas. The wind farm owner pockets the difference. You pay the high price.

"Even if 90% of your electricity comes from wind, if the grid needs just 10% from gas to keep the lights on, you pay gas prices for ALL of it."

Wait, Why Would Anyone Design It This Way?

Fair question. The official reasons:

  1. It reflects scarcity - when we need expensive gas, electricity IS more valuable
  2. It encourages investment - high prices attract new generators
  3. It's hard to game - alternatives lead to manipulation

Here's what they don't say: this system was designed in the 1990s when gas was cheap and wind farms barely existed.

It made sense then. Now? Renewables are over 50% of generation. The system is 30 years out of date. And you're paying the price.

The Number That Explains Everything

Gas generates just 26% of UK electricity.

But it sets the price 97% of the time.

Consider that for a moment. Wind and solar generate MORE than half our power. Gas generates barely a quarter. Yet gas controls what you pay for everything.

In one sentence: You're paying gas prices for wind power because gas is still needed to keep the lights on - and the market pays everyone the price of that last resort.

The Trap: Why You'll Never See Lower Bills

Follow the money. See where it goes.

The Vicious Cycle
1️⃣ You pay levies to fund renewables ~£200/yr
2️⃣ Renewables now generate 50%+ of electricity ✓ Working
3️⃣ Wind costs almost nothing to run ~£0-10/MWh
4️⃣ But gas STILL sets your price 97% of time
5️⃣ So you pay gas prices for wind power £90/MWh
Result: You funded the cheap power. You don't get the cheap price. This cycle repeats.

Can you see the problem now?

You funded it. They profit from it. You don't benefit.

And here's the crucial point: building MORE wind farms doesn't fix this.

Even if we reached 80% renewables, as long as we need even 1% from gas, gas STILL sets the price for everything else. The mathematics of the system guarantees it.

"You're paying to build the wind farms. The wind farms generate cheap power. But you still get charged gas prices. The system is designed so you never benefit."

But Do Renewables Help At All?

Yes, but nowhere near as much as you'd expect given what you've paid.

Analysts estimate that without our wind capacity, wholesale prices would be roughly £25/MWh higher. So renewables ARE helping - they're squeezing out the most expensive gas plants and reducing the average price somewhat.

But consider this: you've paid billions in levies over many years to build those wind farms. And your reward is... slightly less expensive bills than they would otherwise be? Not actually cheap electricity. Just less bad.

What you were promised: "Pay for renewables now, enjoy cheap clean energy later."

What you got: "Pay for renewables indefinitely. Get charged gas prices anyway. Watch the cycle repeat."

Your bills still swing with global gas markets. The wind can be blowing, the sun can be shining, and a pipeline problem in Russia can spike your bill overnight.

That's not cheap clean energy. That's a system that doesn't work for consumers.

The Path Forward: Breaking the Gas Link

🎯 UK Clean Power Progress (Target: 95% by 2030)
50%
95%
Today: 50%+ renewable 2030 Goal: 95% clean

Breaking the gas-electricity price link requires addressing the fundamental issue: we need firm, flexible, low-carbon power to replace gas as the marginal generator.

Options include:

"As long as we need flexible backup generation and don't have massive electricity storage, gas will likely remain the marginal price-setter."

So What Can Be Done?

Let's be direct about the situation:

The government knows this is a problem. They launched a review. Their conclusion? "It'll sort itself out as we build more renewables."

That's simply not true. We've just shown you why. Even at 95% renewables, if we need 5% from gas, gas sets the price for the other 95%.

The only genuine solutions are:

None of these are happening quickly enough.

So for now, you're in a difficult position. Funding renewables through your bill. Not benefiting from them. Watching your costs follow gas prices.

"The UK electricity market is structured so that no matter how much cheap wind power we build, gas will always control your bill. It's not a bug - it's how the system works."

What can you do? You can't change the system alone. But you can understand it, consider fixed tariffs to reduce exposure to volatility, shift your usage to cheaper times if you're on a time-of-use tariff, and ask harder questions of politicians who promise cheap green energy without explaining how marginal pricing actually works.

Knowledge is power. Now you have it.

One more thing: Renewables need a better grid to work properly - the old infrastructure wasn't built for wind and solar. And guess who's funding that upgrade? You. Through your standing charge, which keeps rising regardless of how much energy you use. Read more about standing charge increases →