Lower bills for Scottish households? Sounds like a no-brainer. But the UK government just closed the door on zonal electricity pricing — and the politics behind that choice are as charged as the grid itself.
What Zonal Pricing Would Have Meant
For years, Scotland’s abundant wind and hydro power have been a blessing — and a bone of contention. Zonal pricing would’ve set power prices based on local supply and demand. So in theory, Scots living near wind farms would pay less. Makes sense, right?
Suppliers like Octopus Energy loved the idea. For rural Scots seeing turbines on every hill, cheaper bills felt like the least they deserved. But the idea needed more backers — and didn’t get them.
Why Did the Plug Get Pulled?
So, why kill it? A few reasons. Energy Secretary Ed Miliband, who floated the idea back in April, decided the downsides outweighed the perks. Zonal pricing could’ve pushed bills up in big population hubs where demand outstrips supply — hello, much of England.
One-liner: Hiking bills for voters in London or Manchester? Political suicide.
Plus, any savings for Scots wouldn’t kick in for almost a decade — the time it would take to untangle and rebuild the market rules. That’s an election cycle too far for any minister to bank on.
Industry Pressure and Practical Problems
The power industry wasn’t exactly clamouring for this change either. Companies prefer certainty when they’re putting up new pylons, substations and cables. A big reform like zonal pricing? Risky business.
Lobbying ramped up. Suppliers argued they’d rather see market reforms that incentivise more renewable capacity — get the green power moving faster and more predictably to the big cities that need it.
Here’s the trade-off: more industrialisation in rural Scotland. More turbines, more pylons — so the south gets the juice it wants.
Who Wins, Who Loses?
Critics reckon rural Scots will keep seeing their hills sprout wind farms and transmission lines — but won’t get the benefit in their bills. And they’re probably right, for now.
A short table paints the picture:
| Region | Likely Impact with Zonal | Impact Now |
|---|---|---|
| Scotland | Lower bills long term | No change |
| England (High demand areas) | Higher bills | No change |
| Power companies | Uncertainty | Clearer path to invest |
Octopus might keep championing local pricing experiments, but don’t expect the big players to follow. For them, keeping one national pricing zone is simpler, and simplicity means investment confidence.
So, What’s Next?
The UK’s new plan sticks to boosting renewables and speeding up connections. More cables, more substations, more capacity. That’s Ed Miliband’s bet for hitting net zero targets without spooking voters.
Some local energy campaigners fear the Highlands and Islands will keep bearing the brunt of “green industrialisation” without the sweetener of lower household bills.
One Orkney resident summed it up: “Our view’s worth less, but our power still costs more. Work that one out.”
