Government considering regional energy pricing

Baldeagle095

https://www.bbc.co.uk/news/articles/cp91md1lj92o

Any comments?

debitcardmayhem

Plenty on here https://forums.moneysavingexpert.com/discussion/6307202/energy-news-in-general#latest

Netexporter

We already have regional pricing. Just different regional pricing.

Mark_d

I think it's a good idea in that the amount you pay will be reflective of how far the electricity has to be transported to get to you.  In the short term some customers would have to pay more whilst some pay less.  But in the longer term generation and demand will tend to be in the same place.  Less transportation of energy will mean a reduction in transportation costs.

WibbleBaaaaaa

Great news at last, about time, looking forward to those lower sc of 40 and under some have been enjoying for the last few years, even though i am in a majoy city in Scotland we are paying 64/70p sc which has been disgraceful for a country producing so much clean energy.......energy needs to be devolved as soon as possible..

Scot_39

Mark_d said:

I think it's a good idea in that the amount you pay will be reflective of how far the electricity has to be transported to get to you.  In the short term some customers would have to pay more whilst some pay less.  But in the longer term generation and demand will tend to be in the same place.  Less transportation of energy will mean a reduction in transportation costs.

Tell that to the folks in charge  - who for decades - authorised the location of much of our generation - or the ministers and MPs who bowed - many actually actively supporting - nimby pressures and hence the defacto WM ban on on shore wind in 2015 - that lasted nearly a decade - and many who even seek to delay connections to new offshore farms too.

Edit

Many blockers are a very small - but vocal - section of the population in many areas.  Why should everyone pay the cost for their actions?

The classic example being the Viking wind farm off the Shetlands and so to use the power - and to stop paying them not to generate - the networks - that we pay for - had to stump for the infrastructure - including a c150m HVDC link to handle it's output.  Bet you the cost of that isnt reflected in their auction CfD rates - but it will be in our bills.

And cumulatively over time - put near 15GW - 48% of UK wind - in Scotland - (48% figure as per industry trade body press releases when UK hit the 30GW milestone - mid 24) - for 8% of the population. Ironically it was the expanded Viking farm off Shetland that took us over the 30GW iirc.

That despite well known grid bottlenecks at the border - and so without mass investment in the networks at great cost - essentially a lot of it on windy days - for just for 8% of the population - who wont realistically ever be using it.

With at least 6GW iirc more generation licensed / planned.

(As shown by the simple fact that we now foresee a need for 5 times current - so 10GW of HVDC links to transmit the power south - and if Scotland were ever to go independent - would be an imported energy source - so arguably none of that counts as energy security for c92% of UK population)

And for those with any knowledge of power distribution - long distance AC grid transmission can become a non trivial issue around - which you might well argue meant that HVDC requirement and so costs were as good as penciled in as soon as the GWs of our remote licenses sold.

So why was it only late last year - after by some reports 2 years of delay - that saw a reported cost increase of over £1bn - that Ofgem finally approved EGL2.

When Scotlands farms were already getting £100s of millions in curtailment payments - and that switched off generation - nearly doubled last year.

https://www.ref.org.uk/ref-blog/384-discarded-wind-energy-increases-by-91-in-2024

 

We are already paying for WGL - 2GW HVDC link down west coast to N Wales - installed and operational - we will soon be paying for EGL1 and EGL2 to be built - operational target 2029 (or if not paying yet another £400m plus per annum beyond ESOs grid thermal contraint estimate of £3bn peak pa by 2030 - just for the share they are planned to relieve from the problem).

Remote renewables and their contracts arent serving us.

As the REF quote (OK maybe not the most independent) says

"Seagreen is clearly woefully located from the perspective of the consumer, and excellently placed for SSE and the other shareholders"

(Seagreen being a 1000MW wind farm - off East (Oops not West) Coast of Scotland - landed near Carnoustie - famous for it's golf course)

Qyburn

WibbleBaaaaaa said:

.......energy needs to be devolved as soon as possible..

Not sure that would be good for Scotland. Who would pay the wind farm subsidies and/or constraint payments when there's more wind energy than is needed?

Scot_39

Offshore renewables are AFAIK already are devolved.

The Scottish Crown Office gets the license fees - and so money goes directly into Holyroods coffers - so ....

mmmmikey

WibbleBaaaaaa said:

Great news at last, about time, looking forward to those lower sc of 40 and under some have been enjoying for the last few years, even though i am in a majoy city in Scotland we are paying 64/70p sc which has been disgraceful for a country producing so much clean energy.......energy needs to be devolved as soon as possible..

I agree with much of what you say, I'd change the word devolved to regionalised though. There's been mixed reporting on this and although zonal pricing is being considered, the interview I saw had the secretary of state saying no decision has been made and appearing to lean towards leaving things as they are and not approving zonal pricing, although he did just about leave the door open enough for a political fudge. As I understand it, you'd see the savings through a reduction in unit rates with standing charges staying as they are (but let's not debate that again). 

sheenas

I heard the interview and it was complete nonsense that is being reported. The idea of charging Scottish consumers pay less because they don’t need exported electricity area solves nothing. EM is tasked with reducing bills not increasing bills based on location. 

Scotland is devolved in terms of energy and as others have said they issue their own wind farm licenses. Further Scottish power networks distribute electricity in Scotland, so a degree of separation already exist.