The UK’s energy future is at a crossroads—and zonal pricing might steer it off track.
RenewableUK has backed a hard-hitting letter to the Government, slamming proposals to introduce regional electricity pricing.
The concern? A postcode lottery for bills and a serious threat to clean energy investment.
If Ministers move forward with this plan, the UK would be carved into pricing zones, meaning households and businesses across England and Wales could end up paying more for the same power.
The scheme, under government consideration, could hit consumers in these regions hardest.
Jane Cooper, Deputy CEO of RenewableUK warned:
The reality is that introducing regional or zonal electricity pricing is likely to lead to higher bills for households and businesses in parts of England and Wales, as well as disrupting new investment in clean energy.”
Industry leaders, energy-intensive users and trade unions have all joined forces, warning Energy Secretary Ed Miliband and Business Secretary Jonathan Reynolds that the move would inject uncertainty into the market.
Developers could start pricing in risks when bidding on clean energy auctions, driving up costs for vital projects.
“It’s hard to see how the Government could succeed in delivering clean power by 2030 whilst also introducing this complex and controversial scheme,” Ms Cooper added.
At a time when billions of pounds in investment are needed to boost energy security, the risk of stalling new developments could leave the nation falling behind on its net-zero ambitions.
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