US EditionMinisters Poised to Drop Plans for ‘Zonal Pricing’ in British Electricity Market
SCOTLAND, UNITED KINGDOM, JUL 9 – The UK Government cited risks to investor confidence and potential higher bills elsewhere as reasons to drop the zonal pricing plan despite predicted £52 billion consumer savings over 20 years.
- In mid-2025, the UK government chose to scrap plans for zonal pricing in the electricity market, citing concerns related to economic pressures on households.
- This decision came after a consultation that began in 2022 and growing concerns that implementing zonal pricing would delay renewable energy investments and not be completed until after the upcoming election.
- The zonal pricing proposal aimed to lower electricity costs in regions with excess supply, such as Scotland, to incentivize businesses to relocate there and decrease the amount of wind power generation being curtailed.
- Alistair Phillips-Davies, outgoing SSE chief, called zonal pricing a “huge mistake” creating a “postcode lottery” making some households pay £200 to £300 more depending on location.
- The government concluded that delivering clean power rapidly with imminent grid upgrades and renewables auctions outweighed zonal pricing’s benefits, promising a fairer, affordable national energy price.
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·Canada
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Total News Sources34
Leaning Left3Leaning Right5Center4Last UpdatedBias Distribution42% Right
Bias Distribution
- 42% of the sources lean Right
42% Right
L 25%
C 33%
R 42%
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