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Starmer Orders Reassessment of Zonal Electricity Pricing Plan

Sir Keir’s move signals renewed scrutiny of regional pricing just as Energy Secretary Ed Miliband prepares his imminent recommendation

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Overview

  • Energy Secretary Ed Miliband is poised to deliver his advice on adopting zonal pricing for electricity within days
  • The prime minister has stepped in to demand closer examination of the scheme’s costs versus benefits
  • A Lords committee report backs regional pricing as a means to optimise grid capacity and curb new infrastructure spending
  • Supporters project £52 billion in consumer savings and £27 billion in reduced grid upgrade costs over 20 years
  • Critics warn the change would impose higher bills in the South, create a postcode lottery and deter renewable energy investment