In a letter to the UK government, the unions and associations from the UK’s energy-intensive industries, including steel, glass, ceramics, and renewable energy, have urged the government to immediately rule out zonal electricity pricing and adopt a reformed national market to protect energy bills and encourage investment in the UK’s pipeline of renewable energy projects.
The letter highlighted that zonal pricing, a proposal which is currently under consideration, would increase the cost of investing in renewable energy projects and have a negative long-term impact on energy bills. “The uncertainty caused by the continued deliberation of zonal pricing is undermining both the competitiveness of the UK’s industrial base and the investment required to deliver the government’s desired growth across all parts of the country,” the letter said.
The consortium of unions and associations noted that, if the UK government does opt for zonal pricing, it will undermine the UK’s upcoming National Infrastructure Strategy and Industrial Strategy in the summer, given the impacts this uncertainty will have on their operations and prospective investment plans.