Overview

• The proposed zonal pricing system would divide the UK electricity market into regions with rates based on local supply and demand.
• Supporters, including Octopus Energy and Ofgem, argue the plan could make the grid more efficient and reduce overall costs.
• Critics, such as SSE and Scottish Power, warn it could deter renewable investment, create regional inequities, and complicate the path to net zero by 2030.
• Polling shows significant public opposition, with 58% of respondents in England and Wales against the proposal, citing fairness concerns.
• Ed Miliband has reiterated that any reforms must lower bills nationwide and confirmed no final decision has been made, with a government announcement expected by mid-2025.