The government will decide by the summer on controversial proposals to charge some households more for their electricity than others, Sky News understands.
The energy secretary Ed Miliband has been mulling over plans for “zonal pricing”, which would see different regions of the country pay different rates, based on supply and demand levels in the local area.
The idea is to attract industry to build in low-cost areas, and incentivise new electricity generation in regions where people need it most.
Supporters say zonal pricing could lower everyone’s bills to some extent by making the system more efficient – but some would fall more than others.
Critics, including renewable energy generators, warn the plans would create a postcode lottery for bills and put investors off certain areas, risking jobs.
It is not yet clear how the changes would be passed on to household bills. But it could see people in the south of England pay much more than those in parts of Scotland – though not, the government hopes, more than they do now.
Ed Miliband told Sky News: “My bottom line here is any reform we make has got to cut bills, and it’s got to cut bills across the country.
“We’re not going to have a postcode lottery… If there are bills savings to be made, we want them to be spread across the country so that all consumers benefit.”
He is expected to make his recommendation to fellow ministers in the coming weeks, before the government decides either way by the middle of this year.
They are keen to resolve the issue – which was also considered under the last Tory government – before businesses start bidding for fresh renewable power contracts in summer.
UK still ‘vulnerable and exposed’
It comes as the UK government hosts a summit on energy security in London today, lobbying other countries to leave fossil fuels behind.
Read more: UK clean energy vision collides with Trump’s fossil…
