Ed Miliband has decided against implementing zonal pricing for electricity in the southern UK after concerns were raised about its potential to deter investors and complicate renewable energy projects. The plan aimed to encourage heavy electricity users to move to areas with excess generation supply, like Scotland. While the proposal could have saved consumers £52 billion over 20 years, the government opted to focus on clean energy goals and grid enhancements instead. The decision highlights the tension between policy initiatives and industry response within the energy market.
Zonal pricing could have set lower electricity prices in areas where supply far outstrips demand, encouraging industry relocation and reducing grid generation shutdowns.
The government concluded that benefits of expediting the clean power mission and addressing grid upgrades outweighed potential advantages of zonal pricing.
A report predicted savings of £52 billion for consumers over 20 years if zonal pricing was implemented, alongside reduced costs for grid upgrades.
Greg Jackson and Octopus Energy backed the proposals, which faced backlash from major energy companies like SSE and Scottish Power.
Collection
[
|
...
]