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.
- On Thursday, the UK Government announced it is abandoning its planned zonal pricing scheme to maintain a single national wholesale electricity price, citing sector concerns.
- Mounting sector criticism and No 10's concerns over infrastructure risks prompted the reversal of the zonal pricing plan, as the government prioritized investor confidence and the clean power mission.
- Analysis shows FTI Consulting predicted £52 billion in 20-year consumer savings and £27 billion in grid-upgrade reductions, while the UK Energy Research Centre warned higher subsidies could wipe out zonal benefits.
- The UK government’s decision to abandon zonal pricing, announced to provide certainty ahead of the AR7 auction, was supported by industry figures who said it would boost investor confidence and focus.
- A consultation will launch later this year with NESO on reducing constraint payments, alongside publication of the Reformed National Pricing Delivery Plan to support system reform.
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We’ll all pay for Ed Miliband’s zonal pricing folly
Philosophers have debated the concept of ‘fairness’ for centuries. Intellectual heavyweights like Immanuel Kant, Karl Marx, and Aristotle have all had their say. They need not have bothered. The world finally has a definitive answer and it has come from the most unlikely of places: the Department for Energy Security and Net Zero’s ‘Review of
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Coverage Details
Total News Sources35
Leaning Left3Leaning Right5Center5Last UpdatedBias Distribution38% Center, 38% Right
Bias Distribution
- 38% of the sources are Center, 38% of the sources lean Right
38% Right
L 23%
C 38%
R 38%
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