However, research suggests that exporting subsidised energy is predicted to add £5 to the cost of every megawatt hour in the British electricity system in 2030, according to figures reported by the National Energy System Operator (NESO), the publicly owned body responsible for running and planning the future of Britain’s electricity system.

The Centre for British Progress argues that Britain is already potentially shelling out millions per day subsidising energy in Europe.

Founded in 2025, the Centre for British Progress is a think tank exploring UK growth, with a focus on housing, energy and building AI infrastructure.

Its latest report, titled “Quid pro quo: cheaper electricity now, for longer term market reforms”, argues for the end of “contractual abominations that bind our hands in future” as well as for a comprehensive bill relief package.

Costs expected to increase

On April 11 2026, Britain was exporting power during periods when the average wholesale price was just £11.69/MWh. But, the think tank reports, the weighted average CfD strike price was £154.71/MWh.

That meant British bill payers were potentially topping up subsidised generation by more than £140/MWh while the cheap electricity flowed to Europe.

On a conservative calculation, that comes to around £7m in one day, according to the centre.

The costs are projected to increase, as Britain builds up its solar and wind generation capacity, and the country is expected to go through more periods when it is net-exporting power to Europe.

Annual electricity demand is projected to reach around 287 million megawatt hours by 2030, according to NESO.

This could cost British bill payers more than £1.4bn in subsidising European energy supplies, assuming every hour costs around £5 in subsidised energy.

Conversely, when wholesale prices are higher than the fixed CfD strike price, generators pay back the difference into the scheme, which happened when electricity prices spiked during the energy bill crisis in 2022-23.

Over that winter, CfD payments reduced the amount needed to fund the government energy support schemes by around £18 per typical household.