Plans to split UK market into energy pricing zones dropped
National plan for zonal energy pricing scrapped
- The UK Government has decided against implementing zonal energy pricing, which would have led to different electricity rates across the country.
- Instead of zonal pricing, the government will proceed with reforming the existing national electricity pricing system.
- Energy Secretary Ed Miliband said this decision aims to deliver a fairer, more affordable, and secure electricity system, while protecting vital investment in clean energy.
- Industry figures, including SSE, UK Steel, and Centrica, welcomed the move, stating it provides much-needed clarity and avoids the risks and increased costs associated with zonal pricing.
- The Shadow Secretary of State for Energy Security and Net Zero, Claire Coutinho, criticised the government, claiming Ed Miliband's energy bill promises are a “fantasy” and his net-zero policies will impose significant costs.