UK Government rejects zonal pricing and maintains national electricity pricing
- The UK Government has decided to retain a single national wholesale electricity price.
- This decision follows the rejection of proposals to create regional pricing zones.
- Stakeholders in the energy industry are calling for clarity on future plans to address rising energy costs.
In the UK, the Government announced a decision to retain a single national wholesale electricity price, rejecting proposals to create regional pricing zones. This decision came from Energy Secretary Ed Miliband, who, although previously considering zonal pricing which would allow different rates based on local supply and demand, concluded that a national pricing system is more beneficial. This approach is intended to provide consumers with a fairer, more affordable, and secure electricity system. Besides, it aims to safeguard vital investments in clean energy amid concerns about the risks associated with zonal pricing. The initial proposal for zonal pricing was met with strong opposition from various sectors, including energy companies and industry representatives, who argued that it would create imbalances between regions, effectively turning electricity pricing into a