A new survey has revealed that the British public strongly opposes the UK government's proposed zonal energy pricing system, with 85% of respondents describing the plans as “not very fair.” The survey, conducted by independent research house Yonder Data Solutions, highlights widespread concern over the potential implications of zonal pricing, which would divide the energy market into localised zones where prices would fluctuate based on supply, demand, and availability.
The proposal is part of the UK government's Review of Electrical Market Arrangements (REMA), which aims to reform the energy market to help meet the country's clean power goals. However, the survey, which polled over 2,000 consumers, shows that the public views the concept as both unfair and impractical.
The survey comes at a time when the Fairer Energy Future campaign is gaining momentum. The initiative, supported by a coalition of manufacturers and energy producers including BayWa r.e, Boralex, and UK Steel, calls for an “enhanced national pricing” regime rather than a local or regional pricing system that would lead to higher energy costs in areas like south-east England.
Fairer Energy Future has voiced concerns that the government's zonal pricing plans could jeopardize over £13 billion worth of renewable infrastructure projects in Scotland. The group argues that a national pricing system would be more cost-effective for consumers and businesses, reducing uncertainty and preventing inflated energy bills in regions where renewable energy infrastructure is difficult to develop.
Richard Dunkley, Chief Executive of OnPath Energy and spokesman for Fairer Energy Future, said: “It is important that the UK government listens to the concerns of the British public and wider industry as it considers the future of the energy network. Ultimately, consumers and businesses will be paying the price for years to come if we get this wrong.”
The survey also found that while lower energy bills were not a top priority for most respondents when considering where to live, 70% of participants did not rank “lower energy bills” within their top five considerations. Among those who said they would consider moving to a different zone for cheaper energy prices, the survey indicated that they would require savings of over £20,000 over 16 years to justify relocating.
Fairer Energy Future argued that these findings undermine claims that zonal pricing would prompt businesses and consumers to relocate to regions with cheaper energy costs. The campaign group also raised concerns that zonal pricing would damage critical sectors of the UK's industrial base and increase energy bills for millions of consumers.
Dunkley added, “For zonal pricing to work it has to have winners and losers, which would result in damage to critical areas of our industrial base and also higher bills for millions of consumers. Instead, we have found strong support for our ‘enhanced national pricing' proposal. It is the best option for lowering everyone's energy costs, supporting green jobs and investment, and realising the government's clean power 2030 goals without the uncertainty and unknowns zonal pricing would bring.
