Plans to divide Britain’s electricity market into regional price zones have sparked concerns among some of the country’s largest industry groups.
In a letter to ministers, UK Steel, Make UK, RenewableUK, and the Global Infrastructure Investor Association argued that such changes could increase costs for manufacturers and deter investment, posing a risk of “de-industrialisation”.
The proposed reforms, initially developed by the Conservative government and yet to be fully addressed by Labour, suggest splitting the current single national wholesale electricity price into regional prices.
This shift could see different parts of the country paying more or less for electricity depending on local supply and demand.
A government spokesperson told Energy Live News: “In an unstable world, the only way to guarantee our energy security and protect consumers from future energy price shocks is by moving towards homegrown power.
“We are reviewing responses to the consultation on reforming electricity markets and ensuring that any reform options taken forward focus on protecting billpayers and encouraging investment.
“And our new industrial strategy will deliver long-term, sustainable growth right across the UK by supporting our industries and driving private investment into our economy.”
