Zonal Pricing: Millions Face Higher Bills Thanks to Red Ed's Marxist Pricing Plan
- Philip James
- Apr 25
- 3 min read
Millions face higher bills just for living in 'affluent' south.
Ed Miliband has preposed a two-tier energy pricing scheme that would effectively turn Britain’s energy market into a postcode lottery. Known as "zonal pricing," the proposal under consideration would mean households pay different rates for electricity purely dependent on where they happened to live.
Miliband says the new scheme would bring down prices in areas where there is better coverage of renewables, but history shows that no government scheme in any market has resulted in lower bills. The data shows aligning electricity prices with regional supply would result in widespread price hikes, deepen regional inequality, and create a logistical nightmare for consumers and businesses alike.
What is Zonal Pricing?
Zonal pricing would divide the UK into multiple geographical regions or "zones," each with its own electricity pricing determined by local grid constraints and generation capacity. In short, areas with high renewable generation and low demand (like northern Scotland) would pay lower wholesale electricity prices, while areas with high demand and limited generation (like southern England) would pay more.
This pricing mechanism is common in certain large, geographically diverse power markets like the U.S. (notably PJM and CAISO) and parts of the EU. But those markets have far more interregional flexibility, market size, and infrastructure than the UK, where regional disparity is sharper and grid connectivity weaker.
Translation? If you’re in northern Scotland, congrats — you win the government’s new regional energy jackpot. But if you live in London, the South East, or anywhere with more than five days of sunlight a year, you're screwed.
The Numbers: Winners and (Mostly) Losers
According to research from energy analytics firm LCP Delta, the overwhelming majority of UK consumers would lose out under this system. Here's a breakdown of their findings:
Zone | Region | Price Change (£/MWh) | Impact on Bills |
A | Northern Scotland | -£20/MWh | ↓ ~8% (significant drop) |
B | Northern Scotland | -£18/MWh | ↓ ~7% |
C | Northern Scotland | -£15/MWh | ↓ ~6% |
D | Central Scotland | +£3/MWh | ↑ ~1.2% |
E–K | Central to South East | +£6/MWh | ↑ ~2.4% (moderate rise) |
L | South Coast | +£10/MWh | ↑ ~4% (highest increase) |
In total, over 60 million bill-payers across England and Wales would face higher energy prices. The South Coast, East of England, and Greater London would be disproportionately affected—areas that already bear some of the highest housing and transport costs in the country.
Public Opposition: Overwhelming and Consistent
Public sentiment is clearly aligned against the proposal. An opinion poll conducted in early 2025 found:
58% of respondents oppose zonal pricing.
Only 14% support the scheme.
59% believe it is unfair.
A mere 16% think it’s fair.
72% say Labour should prioritise reducing costs nationwide rather than dividing the country into regional energy markets.
The idea is not just unpopular—it is politically radioactive.
The Economics Don't Add Up
Proponents argue zonal pricing reflects the “true cost” of delivering electricity and incentivises investment in local generation. But this logic breaks down under scrutiny:
The UK has a heavily centralised energy infrastructure, with limited storage and transmission flexibility. This makes regional price differentiation less meaningful and more punitive.
Grid constraints are not just about distance—they're also about capacity and usage patterns. Penalising consumers for living in high-density, economically critical zones like London serves no practical purpose.
The system could deter investment in areas deemed "expensive zones" and introduce uncertainty for businesses trying to forecast operational costs.
Jane Cooper, Deputy CEO of RenewableUK, warns that this “complex and controversial scheme” could actively undermine Britain’s clean energy transition by scaring off investors and creating price volatility.
Political Doublethink
Ed Miliband has publicly denied wanting to create a "postcode lottery" for energy bills. But that’s precisely what this is. A policy that raises energy costs by 2–4% for most of the country, while benefitting only a few remote regions, is by definition a postcode lottery.
While Miliband insists no final decision has been made, he’s also preparing a formal recommendation for Cabinet—a contradiction that suggests the groundwork is already being laid for implementation.
Zonal pricing in the UK is just another concealed attempt at installing Marxism on an unsuspecting public: Miliband is 'punishing' the south because of his fantasy idea that it is more affluent than the north. Punishing millions for their postcode is demented, and proves that Labour's energy plan is based entirely on ideology not economics.
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