Ministers drop zonal pricing plans: comment

Commenting on the news that the Government has decided not to introduce zonal pricing for the electricity market in the UK [1] Dr Simon Cran-McGreehin, Head of Analysis at the Energy and Climate Intelligence Unit, said: "A major flaw in the UK's energy system revealed by the ongoing energy crisis is the heavy reliance on gas for both heating and electricity generation which itself generated a double whammy hit on people's gas and electricity bills as well as costing the tax payer billions in subsidising those bills.

"Market reform could help to solve this, reducing the times that gas sets the electricity price which currently stands at over 90%. The other solution is more renewables to squeeze out gas and electricity which has become more British over the past decade as we have rolled out wind and solar [2].

"As volatility remains on the international gas markets, which foreign actors like Putin can meddle in, every wind turbine we install means less gas imports are needed from abroad as the North Sea continues its inevitable decline. This stabilises prices and improves our energy independence, meaning in future we'll be shielded from another crisis." 
 

ENDS

Notes to editors:

1. Government sets out reforms to create a fair, secure, affordable and efficient electricity system: https://www.gov.uk/government/news/government-sets-out-reforms-to-create-a-fair-secure-affordable-and-efficient-electricity-system

2. UK electricity ‘becoming more British’, less import dependent – analysis: https://eciu.net/media/press-releases/2025/uk-electricity-becoming-more-british-less-import-dependent-analysis 

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George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net