The UK government is leaning towards a decision against plans for a switch to a zonal electricity market, according to Bloomberg.
Officials are reportedly “inclined not to push ahead with the proposal”, according to people familiar with the matter who spoke to the publication anonymously.
A final decision has not yet been made and will require the involvement of Prime Minister Keir Starmer, they added.
Energy department DESNZ told Bloomberg it is “categorically untrue” that Secretary of State Ed Miliband prefers retaining the current single market system over a move to zonal pricing, adding updates on the policy decision will be provided in due course.
Switching the UK to a zonal market system has been under consideration as part of the wider Review of Electricity Market Arrangements reform.
An official decision on the matter has been promised ahead of this year’s AR7 Contracts for Difference auction.