Key energy boss backs zonal pricing

Octopus Energy Founder and CEO Greg Jackson has given his support for a new system of zonal energy pricing that will see renewable energy producers be able to charge different rates based on how far away they are from areas of greatest demand.

With zonal pricing, the country’s electricity network is divided into broad areas, each with its own wholesale energy market. Supporters argue that this will encourage energy generators to install capacity closer to where it is most needed, and save £51 billion in energy costs over 15 years, including an average saving of £45 each year on household energy bills.

Jackson said the UK energy market was currently extremely distorted, but with locational prices, he said some areas of the country will see Europe’s cheapest prices for electricity, which will, in turn, attract new energy-intensive industries to those areas. He said there would also be less of a need to build new pylons to transport electricity around the country. He also said:

“It’s right that the government is progressing zonal pricing and the energy sector must now work together to get this up and running swiftly so we can attract new industries – from data centres to manufacturing – and customers can benefit from cheaper electricity fast.”

While the move to zonal pricing should help to affordably power the heating systems of the future, gas will remain a very competitive form of heating for the foreseeable future. Xgas can provide a modern and efficient boiler installation in Chester and the surrounding area, so get it touch today to learn more.