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Fairer Energy Future warns change would delay investment and raise bills The Fairer Energy Future campaign has written to Chancellor Rachel Reeves (pictured) calling on the government to abandon plans for zonal energy pricing in the British electricity market. The group, which includes renewable energy investors, trade associations, trade unions and other organisations, warned that the policy would damage clean power investment and raise electricity bills. In a letter to Rachel Reeves, the campaign said zonal pricing could delay delivery of the governments energy goals and undermine economic growth. Analysis by Biggar Economics shows that £30bn of planned Scottish renewable investment could be at risk under the proposals, it said. The group added that modelling from the UK Energy Research Centre (UKERC) indicates strike prices in future Contract for Difference auctions could rise by up to £20/MWh due to increased investor risk. The campaign said UKERC also estimates the changes could add £3bn a year to household electricity bills. The group instead backs an Enhanced National Pricing model that would cut strike prices and deliver faster investment, while building a fairer system for all consumers. Recent polling found 85% of consumers do not believe zonal pricing is fair, while 70% support national pricing, the campaign added. Trade unions including GMB, Unite, Prospect and Community have already written to government urging it to rule out zonal pricing. Fairer Energy Future said its preferred approach would focus on delivering planned grid upgrades and boosting the National Energy System Operator’s balancing tools. This, it said, would reduce current constraints, improve energy security and lower costs across the UK. BayWa r.e., Boralex, ERG, CWP Energy, Fred Olsen Renewables, Nadara, OnPath Energy and Voltalia are some of the well known developers that are part of the campaign. |
