Ofgem’s latest price cap increase has reignited Britain’s debate about energy affordability, but the country is overlooking quick solutions to the problem of rising prices.
Before blaming rising bills on wars and global gas prices, the country should first update the assumptions it uses to operate its transmission grid and stop wasting cheap domestic electricity.
Britain cannot control what’s happening in the Strait of Hormuz or build new infrastructure as soon as tomorrow. It can, however, make the most of the wires it already has.
More transmission capacity is already available in the country’s networks but isn’t being fully utilised due to historically conservative transmission ratings. More affordable renewable power continues to be constrained while consumers face higher costs and the UK shoulders an extra £1bn (US$1.35bn) due to wasted wind energy alone.
Britain is windy, and this resource can help address two problems at once: generate low-cost power and increase transmission capacity by cooling down the wires, helping move the electricity to where it’s needed.
