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.
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?
The Pricing System That Keeps Your Bills High
This is the important part. Once you understand this, everything else makes sense.
The National Grid works out how much electricity the country needs right now, and asks power generators to bid for the work.
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.
Wind first, then nuclear, then gas - until there's enough power to meet demand.
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."
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.
Wait, Why Would Anyone Design It This Way?
Fair question. The official reasons:
- It reflects scarcity - when we need expensive gas, electricity IS more valuable
- It encourages investment - high prices attract new generators
- 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 The system is 30 years out of date.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.
Can you see the problem now?
- You paid for the wind farms - through levies on your bill for over 15 years
- The wind farms are working - generating record amounts of near-free power
- But you're charged gas prices anyway - because that's how the system works
- Wind farm owners keep the difference - paid £90/MWh for power that costs them almost nothing to produce
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.
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
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:
- Massive battery storage: Store cheap daytime solar and use it during evening peaks. Current UK battery capacity is tiny (~3GW) but growing rapidly. We'd need 50-100x more to make a dent.
- More nuclear capacity: Provides steady, low-carbon baseload but doesn't help with flexibility
- Interconnectors: Import cheap hydropower from Norway or nuclear from France during tight periods
- Demand-side flexibility: Smart appliances, EV charging, industrial demand response
- Green hydrogen: Use excess renewable electricity to produce hydrogen for flexible backup
So What Can Be Done?
Let's be direct about the situation:
- You've paid levies for over 15 years to fund renewable energy
- It worked - renewables now generate half our electricity at near-zero cost
- You're still paying gas prices because that's how the market is structured
- And you'll keep paying gas prices until someone changes the rules
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:
- Massive battery storage - so we never need gas as backup
- Significant overcapacity - build enough renewable generation that we're never short
- Change the market rules - decouple renewable prices from gas
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.
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 →