The British public overwhelmingly reject zonal energy pricing proposals, claiming the plans are unfair and would be impractical, a new survey has found.
The UK government is considering zonal pricing as part of its Review of Electrical Market Arrangements (REMA).
This would split the energy market into localised zones where prices would depend on supply, demand and availability.
However, the research of more than 2000 consumers found that 85% of respondents thought the proposals were “not very fair”.
The study, the first of its kind in 2025 to focus on voter concerns around zonal pricing, comes as the UK government considers how to reform the energy market to meet its clean power goals.
It also comes as the Fairer Energy Future is launched, a campaign backed by manufacturers and energy producers, including BayWa r.e, Boralex, Ceramics UK, ERG, Fred Olsen Renewables, Nadara, OnPath Energy and UK Steel.
Instead of adopting a local or regionalised system where consumers and businesses in south-east England would have higher energy prices than other areas of Britain, Fairer Energy Future is calling for an “enhanced national pricing” regime.
Fairer Energy Future is warning that more than £13bn of renewable infrastructure projects planned in Scotland will be put into doubt if zonal pricing plans are accepted by the government.
The study was conducted by independent research house Yonder Data Solutions and found that the majority of people (70%) said they did not consider “lower energy bills” to be a top five factor when considering where to live.
Instead, the issue ranked as 11th out of 13 factors and, among consumers who said they would consider moving to a different zone with lower energy prices, residents said they would need to save more than £20,000 over 16 years to move.
Fairer Energy Future said this runs counter to pro-zonal claims that businesses and consumers would seek to move to the cheapest energy areas if zonal pricing was implemented.
The campaign group says enhanced national pricing would be cheaper for consumers, businesses and renewable energy companies than zonal pricing, which it says creates “uncertainty and risk”.
It inflates bills the most in areas where wind farms cannot easily be built, pushing up costs for residents and businesses alike, the campaign group said.
Fairer Energy Future is calling for a reform of the planning, funding and operation of interconnectors.
It is also seeking a reform of consumer bill cost allocation.
The campaign group is supporting the government’s plans to reinforce the grid and fast-track projects that can become operational quickly.
Chief executive of OnPath Energy and Fairer Energy Future spokesman Richard Dunkley said: “It is important that the UK government listens to the concerns of the British public and wider industry as it considers the future of the energy network.
“Ultimately, consumers and businesses will be paying the price for years to come if we get this wrong.
“We are also raising concerns about the potential disastrous impacts zonal pricing proposals could create on investment and jobs.
“Billions of pounds worth of planned renewable projects may have to be put on hold or re-worked if zonal pricing, which would take years to implement, was given the green light.
“For zonal pricing to work it has to have winners and losers, which would result in damage to critical areas of our industrial base and also higher bills for millions of consumers.
“Instead, we have found strong support for our ‘enhanced national pricing’ proposal. It is the best option for lowering everyone’s energy costs, supporting green jobs and investment, and realising the government’s clean power 2030 goals without the uncertainty and unknowns zonal pricing would bring.”