The Association for Decentralised Energy (ADE) has voiced strong support for the introduction of zonal pricing in the UK energy market, countering recent concerns raised by various industry groups. This shift, the ADE argues, is essential for driving down consumer bills, accelerating decarbonisation, and ensuring a secure, flexible energy system for the future.
“Zonal pricing will reduce energy bills, enhance system efficiency, and support the flexible energy solutions that will underpin a renewable-powered future,” said Caroline Bragg, CEO of the ADE. “As we decarbonise, this is the practical, forward-thinking reform that will benefit both consumers and the UK’s industrial strategy.”
“Studies show that zonal pricing could deliver up to £59 billion in consumer savings by 2050. After years of debate, no credible alternative has emerged. Incremental reforms, such as network charging changes, fall short of addressing the UK’s urgent need for a cheaper, more efficient system that supports renewables and delivers energy security.”
The trade association argues that without bold reforms like zonal pricing, the UK risks undermining its clean energy targets and forcing consumers to shoulder higher costs from inefficient system management. The current system of building renewable generation and then paying it to switch off has seen costs spiral over the last few years, costs that are continuing to increase.
The ADE claims zonal pricing will encourage investment in renewable energy where it’s needed most, driving the creation of clean energy infrastructure and reducing the need for costly grid upgrades. It is thought that areas like Scotland, with abundant renewable resources, could see the lowest electricity prices in Europe – fueling industrial growth and reducing the regional cost disparity.
The ADE has called on the government to make the decision to implement zonal pricing to secure the UK’s clean energy future, protect consumers from rising bills, and support investment in decarbonisation.
