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The Guardian - UK
The Guardian - UK
Business
Jillian Ambrose

Zonal electricity pricing plan could add £3bn a year to GB bills, report finds

Wind turbines.
Study warns that an upcoming auction for renewable energy subsidy contracts could clear at £20 per megawatt-hour higher than expected if zonal market plans are adopted. Photograph: Murdo MacLeod/The Guardian

Plans to overhaul England, Wales and Scotland’s electricity market risk piling an extra £3bn on to household energy bills every year until the 2040s, according to the government’s own clean power adviser.

New research has found that moving ahead with a plan to divide the national electricity market into different pricing zones could drive up the cost of building new windfarms as the government aims for a renewable energy boom before the end of the decade.

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