Miliband rules out zonal pricing that raises UK energy bills
Miliband rules out zonal pricing that raises UK energy bills

Miliband rules out zonal pricing that raises UK energy bills

News summary

Ed Miliband, the UK Energy Secretary, has stated that while zonal electricity pricing—where wholesale prices would vary by region—is under consideration, no decision has been made, and he will not support any policy that raises bills for certain areas of the country. He emphasized that the primary goal of any energy market reform would be to reduce bills fairly across all regions, countering media speculation that the South could pay more than the North. The proposal for zonal pricing is supported by some industry leaders and the National Energy System Operator, but faces strong opposition from others who argue it could create a 'postcode lottery' for energy costs. Miliband reiterated that all options are being carefully assessed and that any changes will be made with the intention of cutting costs for consumers and decoupling energy prices from volatile global gas markets. He dismissed reports suggesting a decision had already been reached as inaccurate, highlighting the complexity and ongoing nature of the review. The discussion comes amid broader government efforts to reform the UK's energy system and invest in clean energy infrastructure.

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