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In a recent statement, a think tank has suggested that the nationalization of Britain’s gas power stations is necessary to prevent their owners from manipulating the electricity market. The proposal comes amidst the government’s goal to reduce gas consumption to merely 5% of the electricity grid by 2030, as outlined in a report by Common Wealth.
The report argues that bringing these power plants under public control could safeguard consumers from exorbitant fees—reportedly up to 100 times higher than the typical market rate—demanded when renewable energy sources fall short.
According to Common Wealth, privately owned gas-fired power stations have a distinct advantage in the electricity market’s balancing mechanism. This allows them to leverage their position, demanding high payments for energy on short notice, effectively holding the grid hostage.
As highlighted in the report, British households are inadvertently transferring wealth to wealthy private equity firms and foreign governments through substantial payments for power during peak demand. Earlier this year, an article by The Guardian noted that nearly £18 million was paid to two specific power plants in just a few hours during a period of low wind energy output coinciding with adverse weather conditions.
The Connah’s Quay gas plant in North Wales, which is operated by the German state-owned company Uniper, received £10.3 million from grid operators, while the Rye House gas-fired station, located north of London and backed by the private equity firm Vitol, garnered approximately £7.5 million.
The operators defended these payments, asserting that they had invested heavily in their facilities to ensure availability during critical moments, thereby supporting the stability of Britain’s power infrastructure.
Paul Morozzo, a senior campaigner with Greenpeace UK, emphasized the urgency of the situation, remarking that with the government aspiring to achieve a predominantly clean power system by 2030, it would be prudent to transfer gas power stations into public ownership. This move, he argued, could mitigate the excessive billing practices of current owners.
“The sooner the government curtails this unfair profiteering, the sooner it can effectively reduce energy costs for consumers,” he stated.
Common Wealth has advocated for the establishment of a strategic reserve of gas power stations, to be utilized only during peak electricity demands. This plan would allow for the gradual phasing out of fossil fuel reliance as the UK advances towards cleaner energy solutions by the end of the decade.
A government spokesperson responded, stating, “Our commitment to a clean power future by 2030 replaces dependency on unpredictable fossil fuel markets with sustainable, locally generated energy. This approach is the most effective way to support bill payers and enhance our energy independence.”
Source
www.theguardian.com