The UK government has abandoned its plans for zonal pricing in electricity, a system that would have imposed varying rates based on geographic location. Instead, the government will maintain a single national pricing model. The decision was made to ensure fairness, affordability, and security in the energy system. The zonal pricing plan would have allowed cheaper electricity in regions with surplus generation, while areas with high demand could face increased costs. The energy secretary emphasized the importance of building clean power and the benefits of a national pricing system in achieving energy security.
Building clean power at pace and scale is the only way to get Britain off the rollercoaster of fossil fuel markets. A reformed system of national pricing is the best way to deliver an electricity system that is fairer, more affordable, and more secure.
Supporters of zonal pricing argued it would incentivise industrial users to move closer to renewable generation hubs, increasing system efficiency and reducing costly curtailments.
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