Government considering regional energy pricing

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/81910977#Comment_81910977

The regions for electricity supply are not mapped to economic regions and they do not exist in the way you seem to think they do.

anon_ymous

https://forums.moneysavingexpert.com/discussion/comment/81911360#Comment_81911360

How does it work then?

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/81914413#Comment_81914413

There are energy regions which are created by Ofgem for pricing, NESO recognises these exist (Scotland
, Wales, North East and Yorkshire, North West, East Midlands, West Midlands, Central England, East, Greater London, South East, South West), but they are not actually related to the supply network, which breaks down as (South Wales and South England, East of England, North Wales and the Midlands, North of England, Scotland)

https://www.neso.energy/sites/neso.energy/files/styles/wide/public/media/%5Bmedia%3Abundle%3Atarget_id%5D/2025-11/RESP%20Nations%20and%20Regions.png?itok=khFoeWXF

https://www.neso.energy/publications/electricity-ten-year-statement-etys/electricity-transmission-network-requirements/south-wales-and-south-england-boundaries

It is very easy to get energy from the North Sea wind farms, or from Kent, to Pembroke or Lands end, it involves restrictions and much larger transmission losses to get it to Birmingham and it is very inefficient and extremely limited to get electricity from Scotland to London. The national grid is a complex beast that evolved to allow it to move electricity from generation point to consumption point, that most often was on an East/West axis, not a north/South axis. It was only with the advent of large windfarm in Scotland that this really became an issue. Transmission losses from Scotland to the South East are around 2%, but the bigger issue is there is not enough North/South transmission to get it there, 40% of potential generation is curtailed because it cannot be transmitted, another 20% is given away for free because it cannot be used anywhere else, so only around 40% of potential generation in Scotland is of any use. Those windfarms in Scotland are however subsidised by due to the way the network is set up, even though they are built in a place where the generation is no use.

The idea of regional energy pricing (based on the transmission network regions, not economic regions) is to drive the installation of generation closer to where it is consumed, there would be more in the North Sea off the coast of Norfolk, Suffolk, Essex and Kent, far less off the coast of Lincs, Yorkshire, Durham and Northumberland and Scotland already has more capacity than is useful. Likely more wind would be built in Wales and more Solar in Devon and Cornwall. Whilst long term it could make sense to install more north/South transmission lines this would cost tens of billions of pounds, take decades and be subject to significant planning issues.

As it currently stands we have a system which favours installing additional generation capacity in areas where it is not needed and is of no use, subsidised by regions which need more generation capacity.