Ed Miliband Considers Regional Energy Pricing but Rejects Postcode Lottery
UK Energy Secretary Ed Miliband has confirmed that regional or “zonal” energy pricing is being considered as part of a broader reform to the national electricity market. However, he rejected claims that the government is poised to introduce a “postcode lottery” that would penalize southern households with higher energy bills.
Speaking on BBC Radio 4’s Today programme ahead of an international energy security summit, Miliband emphasized that while zonal pricing is on the table, “absolutely no decision has been made.” He added, “Bills have got to fall, and they should fall throughout the country.”
The potential shift to zonal pricing would align electricity costs with local supply and demand. This could lead to cheaper bills in areas rich in renewable energy—like Scotland—but potentially higher costs for regions further from generation infrastructure, such as parts of southern England.
While supporters like Octopus Energy CEO Greg Jackson say the system could improve efficiency and reduce transmission upgrades, critics like Ecotricity founder Dale Vince warn that millions could face price hikes. Vince, a Labour donor, called the idea “terrible.”
Miliband reiterated that the government is also considering a reformed national pricing model and is approaching the matter with caution, recognizing its complexity and national impact.
The reform would mark the most significant energy pricing change since privatisation in the 1990s
