Gas plants in line for windfalls to keep lights on this winter

More UK gas plants will be in line for windfall payments to help keep the lights on this winter after generators received multimillion-pound payouts last winter.

- Jillian Ambrose

The National Energy System Operator (Neso) expects the UK's winter power supplies to reach their highest level in five years, partly due to a rising number of gas plants willing to generate electricity in colder months.

Gas plants are typically called on to generate electricity when wind and solar power is in short supply. During still winter periods when freezing temperatures drive demand for energy higher, they can often request high fees to fire up their generators.

In early January this year two gas power plants in Hertfordshire and Flintshire, north Wales, were paid a total of £17.8m to run their gas turbines between 4pm and 7pm when demand for electricity was forecast to reach its peak.

The payouts, which were up to 100 times higher than normal market prices, ignited concerns within the industry that gas power plants were able to command excessive payments to generate power when renewable energy generation drops.