Cynical energy giants have questions to answer over zonal pricing
Big Energy never liked Zonal Energy Pricing, which would have brought grid efficiency, saved consumers billions and reduced carbon emissions. Some hoped zonal pricing would help areas which generate power.
Octopus Energy’s CEO, Greg Jackson, urged the UK to adopt it, backed by Ofgem, NESO and Citizens’ Advice.
For the Highlands, the proposal ticked boxes. In a region with a colder climate, in which an estimated 33% of households in Highland experience fuel poverty, and have higher costs of living and lower incomes, the possibility of lower energy bills was attractive. Especially given that costs for those in the Highlands and Islands are higher, because of greater dependence on electricity and heating oil than mains gas.
Even the unstinting efforts of Changeworks, Home Energy Scotland, the Energy Saving Trust and other advice services can only partially mitigate the difficulties faced by many.
But now Energy and Climate Change Minister Ed Miliband has rejected Zonal Pricing, asserting that “a fair, secure, affordable and efficient electricity system” can only be achieved through a reformed pricing system.
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The way to escape from dependence on “fossil fuel markets controlled by dictators” is through a single national (UK) wholesale price. The dreaded ‘Postcode Lottery’ had to be avoided. And there was no guarantee Zonal Pricing would bring lower bills for anyone.
Scottish Secretary Ian Murray praised the........
© Herald Scotland
