The head of EDF Energy has warned Britain is producing too much electricity relative to demand, leaving households to cover the cost of shutting down renewable energy sources.
Simone Rossi said the imbalance means consumers are paying hundreds of millions of pounds to curtail wind and solar generation when supply exceeds usage.
Writing in The Telegraph, Mr Rossi said: "In the UK electricity sector, the risk is that we have too much supply and not enough demand."
He added: "Almost every day this country switches off wind farms because we have too much electricity and at the same time motorists spend millions pouring expensive petrol and diesel into their cars. It's wasted British energy we could be using. This has to change."
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The decline in electricity demand follows two decades of industrial contraction, with annual consumption falling from 350 terawatt hours to 272 terawatt hours.
This gap between supply and demand resulted in significant costs for consumers last year, with curtailment payments reaching £1.5billion to compensate wind farm operators required to stop generating electricity.
These payments are issued when grid congestion prevents electricity from being transported to areas where it is needed.
The National Energy System Operator raised concerns about excess supply last week, outlining preparations to prevent the grid from being overwhelmed by solar generation during the summer.
EDF chief Simone Rossi warns UK has too much electricity supply as households pay £1.5billion curtailment costs
|GETTY
Mr Rossi’s comments follow an announcement from Ed Miliband on measures aimed at stabilising energy prices after fuel shortages linked to the Gulf crisis.
He urged the Government to accelerate the rollout of electric vehicles and heat pumps to address the imbalance between supply and demand.
Mr Rossi warned that without increased electricity usage, consumers would continue paying for energy that is not used.
He highlighted differences in electric vehicle uptake between the UK and Norway, where adoption rates are significantly higher.
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Mr Rossi believes the Government could save households £725 on their energy bills
| GETTYElectric vehicles account for around 23 per cent of new car registrations in the UK, compared with 95 per cent in Norway.
Mr Rossi said that if Britain had matched Norway’s progress over the past decade, demand for petrol and diesel would now be about 20 per cent lower.
He also pointed to the broader energy mix, noting electricity currently represents about a fifth of total UK energy consumption, with oil and gas making up the remainder.
UK electricity prices remain among the highest internationally, creating a barrier to wider adoption.
Figures from the International Energy Agency in 2024 show industrial users paying 27 pence per kilowatt hour in the UK, compared with 16 pence in France and six in the United States.
Despite higher costs, Mr Rossi said recent energy market pressures linked to the Iran crisis have led more businesses and households to consider switching from gas to electricity.
He outlined a longer-term vision of the UK shifting towards an "electrostate", driven by increased use of domestically generated electricity across sectors, including digital technology and artificial intelligence.
Research from Electrify Britain indicates households could reduce annual energy bills by £725 by 2035 through adopting electric heating, cooking and transport.
Mr Rossi said: "The last four years have shown business as usual won't cut it".