Scotland could end up with the lowest electricity bills in Europe—if a proposed overhaul of the UK’s energy pricing system goes ahead. That’s the view of Greg Jackson, founder of Octopus Energy, who is calling for a zonal pricing system to replace the current national setup.
But the idea has sparked a fierce debate in the energy industry, with critics warning it could create a postcode lottery and threaten billions of pounds worth of clean energy investment.
⚡ What Is Zonal Pricing—and Why Does It Matter?
Currently, electricity prices in the UK are set nationally, based on the cost of the most expensive source at any given time—usually gas. That means even if your region is generating cheap wind power, your bill is still based on the national average.
Under zonal pricing, energy prices would vary by region, based on local supply and demand. Areas that generate more renewable energy—like Scotland—would pay less because the electricity they use would come mostly from low-cost sources.
“It’s crazy,” said Jackson. “Scotland is a net exporter of renewable power, yet consumers there are paying top prices. That makes no sense.”
He believes zonal pricing could cut Scottish bills by hundreds of pounds a year and encourage big energy users—like data centres—to move north, reducing strain on the grid and cutting costs nationwide.
🏭 Not Everyone Is Convinced
Big names like Scottish Power and SSE strongly oppose the move. They argue that:
- ⚠️ It could delay or divert £75 billion in planned energy infrastructure upgrades
- ⚠️ It would create a postcode lottery, with some areas paying much more than others
- ⚠️ Wind farms still need to be built in windy areas—not just places with low bills
“Let’s cut bills for everyone, not just certain regions,” said Keith Anderson, CEO of Scottish Power.
🔄 What Happens Next?
The UK government is currently reviewing how the electricity market works, and zonal pricing is one of the options on the table. Countries like Italy, Sweden, and Australia already use regional pricing models.
A final decision is expected in summer 2025, but for now, the debate continues—with investment, fairness, and affordability all in the spotlight.
💡 What This Means for Your Bills
While the zonal pricing discussion plays out in Westminster, many households across the UK are still facing high bills—regardless of where they live. But there is support available to help you save money and make your home more energy-efficient.
🌱 We’re partnered with Energy Advice Helpline, who provide free support to upgrade your home and reduce your energy bills. Fill in Energy Advice Helpline’s eligibility checker to find out if you qualify.
