The government has launched a major reset of Britain’s electricity market, setting out plans to create a fairer, faster and more secure energy system – and ditching controversial proposals to charge different prices depending on where people live.
The reforms, unveiled by Energy Secretary Ed Miliband, confirm the UK will stick to a single national wholesale electricity price, scrapping the zonal pricing plan that would have seen southern households pay more than those in Scotland.
The move follows concerns it could push up bills and damage investor confidence.
Instead, the government is putting forward a strategic overhaul aimed at slashing costs, boosting investment and unlocking clean energy.
It’s part of the Clean Power 2030 plan to decarbonise the electricity grid by the end of the decade.
Miliband said: “Our package of reforms will protect consumers and secure investment as we drive to deliver our clean power mission.”
Key to the strategy is a new nationally coordinated approach to building the energy system, shifting away from piecemeal developer-led projects.
This includes a fresh focus on upgrading grid infrastructure, cutting down on costly constraint payments to generators who are paid to switch off because of network limits.
The plan also sets out action to bring forward investment in flexible technologies like batteries and demand-side response.
A new flexibility roadmap will be published later this year to give the market clear direction.
To give investors more certainty, the government will now publish maps of future infrastructure needs, including strategic plans for offshore wind and onshore projects up to 2050.
New measures will also clarify how grid access charges are set, smoothing the path for low-carbon generation across the country.
Further work is underway to speed up grid connections and reform planning rules, with officials saying the system must be reshaped to handle the surge in clean power needed to meet net zero goals.
The message from government is clear – the zonal pricing experiment is dead and a national plan is now the only route to delivering clean, affordable and secure power for all.
Miliband launches energy reset appeared first on Energy Live News.