Earlier quoted context omitted.
Offshore wind in the UK currently uses the "Contracts for Difference" payment mechanism. Operators bid to build turbines, and the best value operators get assigned areas of the sea. Then, they receive a fixed price from consumers for any electricity they generate (effectively, but there's market mechanisms in there that complicate the accounting). Initially, this was much more expensive than fossil electricity, but t…
I've always wondered under the mechanism who has benefited from higher energy prices in the UK? With consumers currently paying high prices, who's getting the difference between the CfD price and the market price for energy generated by wind. Is it the government do you know?
Any imbalance between the agreed price and the reference price is sent to the LCCC (Low Carbon Contracts Company, part of the government).
The LCCC then re-charges any CfD payments or surplus funds to the electricity suppliers. This should eventually work its way into an increase or reduction in household energy bills. So the end consumer should get the difference between the wholesale and CfD price, in theory. This is also taken into account when the OFGEM price cap is calculated.
To answer your question about who benefits from high electricity prices - mostly fossil fuel producers, but also fossil power stations, legacy renewable generators with direct subsidies rather than CfDs, and electricity market traders exploiting the volatility.