How would you prefer your electricity prices to be set – nationally or locally? There is little middle ground in the bitter lobbying battle over zonal pricing, the proposal that Great Britain’s electricity market should be split into regions with prices set by local supply and demand. The energy secretary, Ed Miliband, must decide in the next few months, in time for this summer’s auction for new wind and solar projects.
One camp – led by Greg Jackson, the politically plugged-in founder of Octopus Energy, the UK’s biggest retail energy supplier – argues that customers’ bills will “skyrocket” unless zonal pricing is adopted. It points to the wasted money spent paying windfarms to shut down when, for example, it is blowing a gale in Shetland and the local grid is overloaded with more power than can be transported south.
