Britain's energy regulator has issued a stark warning to traders gaming the electricity interconnector market, accusing some of holding the system "to ransom" through capacity hoarding. Ofgem reminded market participants of rules preventing artificial scarcity after the country faced extreme price spikes, paying over £3,000 per megawatt-hour for essential European power supplies.

The regulator found traders controlling "very large" chunks of interconnector capacity, leaving the system operator with limited alternatives. Prices regularly climbed above £1,000 per MWh—roughly ten times normal levels—during periods when the UK desperately needed backup power. Jake Thompson of Montel criticized the practice as fundamentally unfair to consumers who ultimately bear these costs.

Britain operates 10.3 gigawatts of interconnector capacity across links to France, Belgium and Norway. In 2025, the National Energy System Operator purchased approximately one terawatt-hour of imported power at a cost of £160 million. These cables are vital for balancing supply and demand as wind and solar generation fluctuates.

Market experts suggest traders may strategically book interconnector capacity anticipating NESO's needs, then demand premium prices. Ofgem indicated it will monitor closely and enforce existing rules to prevent what it views as manipulative behavior that threatens system reliability and consumer interests.