A coalition of Scotland’s biggest offshore wind developers has warned the UK Government that zonal electricity pricing would push up bills and derail billions in clean energy investment.
In a letter to Prime Minister Keir Starmer and Scotland’s First Minister John Swinney, 17 offshore wind developers—backed by industry body Scottish Renewables—urged ministers to immediately rule out the controversial proposal.
Together, these firms represent around 33GW of Scotland’s future offshore wind capacity, a vital chunk of the UK’s clean energy transition.
Zonal pricing would carve the UK into separate electricity pricing zones, with costs varying by region. Octopus Energy has been pushing the idea and Ofgem has said the scheme has merits.
But there has been a lot of criticism from across the renewable sector. Industry leaders argue this would pile extra risk onto renewable projects, making many unviable and ultimately driving up prices for consumers.
Analysis shows even a slight increase in the cost of building renewable projects would wipe out any supposed savings from zonal pricing.
Rather than fixing the system, it could stall development and leave consumers facing higher bills.
Claire Mack, Chief Executive of Scottish Renewables, said:
“Zonal pricing has become a dangerous distraction which risks derailing these vital new developments for energy security. Any theoretical benefits of zonal pricing have not been convincingly demonstrated and would take at least seven years to deliver.
We urge the UK Government to rule out zonal pricing and commit to workable reforms which ensure industry can deliver the high-value jobs, new supply chains and affordable energy which are crucial for the future prosperity of our country.”
Scottish Renewables is pushing for an alternative approach—called a Reformed National Market—which would strengthen the existing system without jeopardising investment.
The industry has made its stance clear: zonal pricing is a gamble Britain cannot afford.
