Voices: ‘The system is broken’: Independent readers divided over plans for ‘postcode lottery’ energy pricing

A controversial plan to charge different electricity prices across UK regions has sparked strong and divided opinions among Independent readers.

Ed Miliband has confirmed the government is considering a “zonal pricing” system, which would charge different electricity rates based on regional supply and demand.

Critics have dubbed it a “postcode lottery,” with homes in the South likely facing higher bills, while Scotland benefits from greater wind power.

An Independent poll revealed that 73 per cent of readers believe everyone should pay the same rate for electricity, regardless of where they live, while 20 per cent supported the idea of pricing based on local supply and demand.

Only 7 per cent thought regional pricing should be implemented if it accelerates investment in renewable energy.

Some welcomed the idea in principle, arguing that it makes sense for areas closer to renewable energy sources to benefit from cheaper electricity. For these readers, zonal pricing could encourage greener infrastructure and reward regions investing in sustainable energy.

However, others were deeply sceptical, branding the plan a “postcode lottery” that could punish those in the South with higher bills through no fault of their own. Many feared it would exacerbate regional divides, penalising people based on geography rather than usage or efficiency.

Several commenters also voiced concern about the practical implications of dividing the UK into multiple energy zones, warning that it would add unnecessary bureaucracy, delay progress, and deter investment in renewable projects.

Overall, readers agreed the energy system needs reform, but many argued this proposal misses the mark and risks swapping one form of inequality for another.

Here’s what you had to say:

I have been pushing this idea for years. Before the wind and solar in Cornwall, we were always charged more for energy than the rest of the country. The reason given was the long distance from the nearest power station and therefore more transmission losses.

Therefore, now that Cornwall and Scotland are more than self-sufficient in electricity, it makes sense to implement this idea. Vince’s argument is nonsense because there has always been a difference in pricing in different areas.

Baritoneb2

A truly green energy system would produce energy where it is needed. Initiatives looking at generating energy in cities are the future, not wasting a vast amount of resources literally transmitting energy from the north of Scotland to southern England.

England is clearly the ultimate NIMBY. Why does everybody think it is about the view? Windfarms based on peatland in Scotland (which most are, as moorland is considered uneconomic) may actually exacerbate GHG emissions. The complex calculations relied on to ensure they do not unfortunately, rely on a factor relating to fossil fuel generation, which has moved on, and also do not take into account recent research on the long-term effects of peat disturbance.

Of course, places should pay the rate for what they use based on what they produce – how will we ever live a sustainable lifestyle if we don’t?

forthis

This sounds like an idea worth considering. Lower energy prices could potentially increase investment and job creation away from London/SE, which is badly needed. Also, wages are much lower away from SE England, so it doesn’t really make sense for the regions to subsidise energy bills for people who live in SE England.

The best way to reduce wealth inequality in the UK is for the deprived and neglected regions to get a boost in terms of jobs and investment. Of course, residents in London/SE England will protest hard, but these inequalities are growing and damaging the country badly.

ChrisMatthews

Excellent news. The South has been paid winter fuel allowance at the same rate as those living far higher and colder than those on the south coast. They can afford it, with far higher living standards than elsewhere in the UK.

Nowtdaft

Ed Miliband needs to think about what he is saying before he opens his mouth. Saying that prices could be higher in the South, when prices are already much too high, is not a good way of selling an idea – nobody wants to pay even more than they are paying. It may not make much difference to some people, but saying that prices could be lower in Scotland does sound different.

Scotland is a net exporter of energy and sends around 33.8 per cent of the electricity it generates to England and Wales. The worth of this is around £3.3 billion. It is a bit ridiculous if Scotland does not have any benefit from this. Octopus’ CEO recently said that domestic energy should be free in Scotland.

Meanwhile, as green energy is pursued by many providers, there has been an increase in proposed hydro pumped storage facilities in Scotland. Hydroelectric is well known across Scotland, but there are – and should be – considerations made to the delicate ecosystems in Scottish rivers and lochs.

Brodric

Scotland suffers from some of the highest electricity bills anywhere, but would be lowest under zonal pricing, so of course that’s a non-starter for the anti-Scottish UK Government.

First, they should stop the absurdity of the price of electricity being set by the dearest generator – gas.

Second, we need more renewable investment, particularly in tidal, which is 100 per cent reliable.

Third, the price should be the same for everyone wherever they live, as it’s essential for a decent life.

And fourth, it should be nationalised so that the industry works for the benefit of the nation and not foreign owners and shareholders.

Geejay

Zonal pricing would mean lower prices for Scotland.

Cheaper energy = cheaper manufacturing = business moving to Scotland = jobs and prosperity. That will never be allowed to happen.

For the Union to work, the colonies must be dependencies. Disagree with me? Visit the oil capital of Europe, Aberdeen. Walk through the Northern ‘city of lights’ – at least £500,000,000,000 passed through this city. Not a penny touched its sides.

Chichee

Rural northerners are paying the same price as southerners for a service that falls apart every time the wind blows a bit in winter, leaving folk without electricity sometimes for days because the old tin wires have blown off the wobbly telegraph poles.

There would be an outcry if this happened years on end in the cities. Electricity costs far less to produce here than in the South. It’s annoying that we subsidise the gold-plated service southerners get and have such a shoddy service from Northern Powergrid.

Chakra

What is madness is the marginal pricing system, where the most expensive means of generation sets the price. This means the most expensive energy source needed to meet electricity demand – typically gas-fired power plants – sets the price for all electricity, even if renewable sources like wind and solar are cheaper to generate.

This was discussed by Ed Miliband on Today on the BBC this morning, and is the aim of the energy strategy to reduce our costs from the global fossil fuel markets. This is the way to go.

We are doing that ourselves at home by installing a solar panel and battery system to generate our own power and store cheap energy from lower tariffs at night and free energy from our panels. This system will pay for itself in eight years, or even less as we are also installing a heat pump to replace fossil fuel heating.

Wallaby2

People in our society are using too much power. Our ancestors survived using one horsepower each – we often use a hundred to perform the same job.

ALL use of power increases global warming. Power should be strictly rationed, and doing this by price is the first step. Smart meters ought to be able to measure power usage and turn off when your limits are exceeded.

Dodgy Geezer

Standing charges in some areas are 150 per cent of those charges in London and SE England. Add to that the connection charges for generating companies to send electricity to SE England. It’s why Longannet Power Station was decommissioned and demolished.

Electricity prices are linked to commercial gas prices; the price of gas soared because of Russia’s invasion of Ukraine.

All this can be laid at the Tories’ door.

J. Peasemould Gruntfuttock

Zonal pricing almost certainly will lead to adverse electoral consequences for Labour. Given the 2024 results for the Tory/Reform candidates in the South, a poor performance by Labour is likely to boost representation by the Lib Dems and Greens. It will now be interesting to see what happens this May if this new policy direction becomes an issue locally.

sweepydog

“If the government is serious about lowering energy bills, we have far more sensible and effective options – chief among them ‘breaking the link’ between the price of gas and the price of all our electricity.”

This. Doing anything else is indeed madness, and has enabled the price gouging we’ve all been experiencing.

Pandemonium

The link between international gas prices and our cost of electricity is no longer fit for purpose. The artificial means of pricing needs to be done away with and all levies removed. The National Grid has an internal market that pays spot prices from the providers. That needs to be enhanced so that user pricing is reduced and investment is driven to the cheapest means of production with a security levy applied to guarantee energy security in the UK.

MKAndy

We already have a postcode lottery for everything else in the UK, so may as well add this to the list. I do think if you have to have wind farms more or less in your back garden, then maybe those people should get a reduction. Everyone wants cleaner power, but no one wants it to spoil their view or to sacrifice anything to get it.

RBG

While wind power appears fairly dominant in the North, Scotland and the East Coast, more solar farms seem to be passing planning on agricultural fields in the southwest of England.

When and if the price zoning begins, will the standing charge for contribution towards repairs to infrastructure be more in Scotland and the North than in the South West where the power infrastructure seems more resilient and requires less maintenance and repair?

I seem to remember Scotland and the North had a long winter, and the National Grid sent our maintenance teams to help them out because of the weather.

Suggest the government give the people of this country some respite and reduce the cost of non-gas-produced electricity instead of subsidising gas power stations. Let the efficient renewable producers guarantee to take up the slack with investment in battery storage. Let’s face it, British Gas look like they are not going to prepare gas storage for the winter, so gas will be at a premium price this winter if it is bad.

Ohblimeyreally

Why “must” we wait until 2030 to break the link between electricity prices and gas prices? We could do this tomorrow if the political will is there.

Gas accounted for 29.9 per cent of our electricity generation in the last 12 months. The other 70.1 per cent was priced as if it were gas, even though we know it is cheaper. How does this encourage a sometimes sceptical public to embrace renewables, if they are not allowed to benefit financially from doing so?

There’s a very large solar farm planned, which will partly be in my village. Local opposition would evaporate if we were allowed to have reduced electricity bills as a result.

None of this makes any sense at all.

SteveHill

Power is more expensive in the UK than almost anywhere else in the world. This is a matter of national security as much as a squabble between capitalists. The government should be looking for overall cost reductions, not fiddling with zonal charging.

Coastwalker

Bills should be cheaper for communities where there are wind and solar farms. Those who object to planning permission for solar and wind farms can carry on paying for less sustainable energy.

PoppyLil

We already pay different prices depending on where you live. In London, the standing charge is 46.29p/day and the unit rate is 26.48p/kWh, whereas in North Wales & Mersey the standing charge is 69.54p/day and 28.5p/kWh.

A typical semi-detached property uses 4000kWh/year, which means the person living in Liverpool is paying £168 a year more than the person living in London.

The system is broken in the UK and it is the customers who are being fleeced with the highest energy bills in Europe. I am in favour of zonal pricing. This is how the current system was originally thought up – people have always paid more the further they were from where the energy was produced. The difference now is that London is no longer full of power stations like Battersea and instead we rely more on wind, solar and nuclear. Who wants a nuclear power station on their doorstep? Shouldn’t the people who live there see some benefit?

Thepnr

The cost of living generally does vary by region, but it isn’t something that fixed boundaries can adequately deal with – we already see the perfect example of different sides of the same street belonging to different councils and paying different levels of council tax even though the dwellings are essentially identical and earnings include a spectrum from impoverished to well-off.

Any strategy for a fundamental service essential to living should aim at proportional costs relevant to income rather than areas frozen by statute. We already have the basic mechanism to do this via Social Security support, but as long as the essential service being considered is a privatised monopoly, it’s unlikely to happen.

Nobrandloyalty

Prices can be much lower and that must benefit all of us. Everyone must pay the same, regardless, because unfortunately the infrastructure does need to be improved and maintained wherever you are.

Solar and wind farms do and will make energy cheaper; it’s the dumb political policies that stop the reduction from being passed on to the end user.

A large portion of MPs have come straight from private education into politics; they therefore have absolutely no idea what ‘normal’ life is like, or any concept of societal reality. Miliband, take the toffee out of your gob, engage your brain, and stop lying and conning Joe Public.

Bunster

Some of the comments have been edited for this article for brevity and clarity.

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Source: UK Politics - www.independent.co.uk