Plans to split UK market into energy pricing zones dropped
But the Government has now decided to retain a single national wholesale price.
Energy Secretary Ed Miliband said: 'Building clean power at pace and scale is the only way to get Britain off the rollercoaster of fossil fuel markets and protect families and businesses for good.
'As we embark on this new era of clean electricity, a reformed system of national pricing is the best way to deliver an electricity system that is fairer, more affordable, and more secure, at less risk to vital investment in clean energy than other alternatives.'
Energy Secretary Ed Miliband said a reformed system of national pricing is the best way forward (Jonathan Brady/PA)
Energy business SSE said the move provided 'much-needed policy clarity' for investors and consumers.
Martin Pibworth, chief executive designate of SSE, said: 'This decision brings welcome clarity and enables us to get on with investing in and delivering critical clean energy infrastructure, in doing so transforming our energy system and supporting the UK Government's bold ambitions for clean power by 2030.
'Zonal pricing would have added risk at a time when the UK needed to accelerate its clean power transition, making energy bills more expensive. This decision reaffirms the UK as a world-leading renewables market, enabling the efficient delivery of the homegrown energy the country needs.'
Gareth Stace, director-general at UK Steel, said the industry was pleased the Government had heeded warnings and ruled out the 'risky' proposal.
'Zonal pricing would have penalised existing industrial sites, driving up electricity prices, further damaging our ability to thrive, foster jobs, and undermining much needed investment in steelmaking.
'Electricity prices for the UK steel sector are among the highest in Europe. UK Steel warned that zonal pricing would have created a 'postcode lottery' for industrial power prices, conflicting with the Government's own ambition to reduce power costs for British industry.
'As the industry transitions fully to electric arc furnace technology, price competitiveness will become even more central to the sector's future.
'While today's decision provides clarity on the direction of electricity market reforms, the Government must ensure that the alternative to zonal pricing, reformed national pricing, supports rather than hinders industrial competitiveness.'
Centrica chief executive Chris O'Shea said it was a 'common sense decision' and that the 'theoretical benefits never stacked up against the real-world risks' in potential zonal pricing.
Ed Miliband's promise to cut bills by £300 was always a fantasy.
This is what happens when you set yourself impossible climate targets and ignore the costs.
In 2030 you'll be paying around £100 in your energy bill to pay wind farms literally to switch off when it's too windy. pic.twitter.com/LvrmNNqgX0
— Claire Coutinho (@ClaireCoutinho) July 10, 2025
Claire Coutinho, shadow secretary of state for energy security and net zero, said: 'Ed Miliband promised to cut energy bills by £300, but instead as I warned, bills are going up and it's increasingly obvious that this promise was a fantasy.
'The truth is that wind developers have Ed over a barrel because he set himself impossible wind targets, that means we'll be paying them billions of pounds extra, roughly £100 on bills by 2030, not to produce energy, but simply to turn off.
'Even Downing Street are waking up to the fact that Ed's net zero zeal is going to impose huge costs on bills and jobs as we lose businesses to more polluting countries with cheaper energy. That's bad for households, our economy and emissions.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Record
an hour ago
- Daily Record
Pubs in Scotland continue to struggle despite heatwave boost for businesses
EXCLUSIVE: Hospitality chiefs have called on the SNP Government to reform the business rates system which puts bars north of the Border at a "competitive disadvantage" to those in England. Pubs across Scotland are continuing to struggle due to rising costs despite enjoying a bumper weekend as a heatwave grips the country. Hospitality chiefs have today called on the SNP Government to reform the business rates system which puts bars north of the Border at a "competitive disadvantage" compared to those in England. UKHospitality Scotland, which represents members of the licensed trade, said the industry was being squeezed by sky-high energy bills and the impact of employer National Insurance contributions (NICs) being hiked by the UK Government. The trade body warned pubs and bars were now shedding jobs as a result of the NIC hike and is demanding a rethink ahead of the autumn Budget. Pubs are currently closing across Britain at a rate of one a day. The Record previously revealed how 56 bars closed for good in Scotland last year, compared to 42 that shut down in 2023. Around 1,000 pubs have closed north of the border over the last 20 years, with the total dropping from the more than 5,000 operating in 2004. In a letter to Keir Starmer, the trade body warned the 2024 Budget had directly contributed to a reversal in hospitality's ability to create jobs. Between October 2024 and May 2025, the sector lost 69,000 jobs across the UK. In the same period the previous year, hospitality created an additional 18,000 jobs. Leon Thompson, Executive Director of UKHospitality Scotland, said: "The damaging impact of increasing employer National Insurance contributions (NICs) is being felt by businesses and teams across Scotland, with thousands of Scottish hospitality jobs undoubtedly lost since the Budget. "While the damage caused by employer NICs was a decision made in Westminster, we still need Holyrood to step up and back our businesses with vital support. "The Scottish Government needs to speed up in delivering its promise to reform the broken business rates system, before it's too late and Scottish businesses are put at a further competitive disadvantage to those in England. "It's also critical that the Scottish Government maintains and extends business rates relief for the sector at the Scottish Budget later this year - this is the lifeline our venues need." Kate Nicholls, chair of UKHospitality, said: "In the years following the financial crisis we created one in five net new jobs and today employ 3.5 million people. The Government needs sectors like hospitality to create jobs and meet their ambition to get more people back into work. "We have a proven track record of being able to deliver those jobs in every part of the country and for people from all backgrounds. "The NICs change was socially regressive and had a disproportionate effect on entry level jobs." Shona Robison, the Finance Secretary, said: "Businesses are being hit by the impact of the UK Government's decision to raise employers' National Insurance contributions and rising energy costs continue to bite hard. "While many levers to grow Scotland's economy lie with the UK Government, we are providing a package of non-domestic rates reliefs worth an estimated £733 million in 2025-26, including 40% relief – capped at £110,000 per business – for hospitality premises liable for the Basic Property Rate. "Around half of properties in the retail, hospitality and leisure sectors also continue to be eligible for 100% Small Business Bonus Scheme relief – the most generous small business rates relief in the UK.'
Daily Mirror
3 hours ago
- Daily Mirror
378 pub closures expected across UK as industry body issues alert
Thousands of jobs could be lost in the fray as pubs are finding it 'impossible' to turn a profit The UK faces the prospect of losing more than one boozer daily, as the British Beer and Pub Association (BBPA) pleads with ministers to slash the tax and regulatory burden weighing down the hospitality sector. The organisation predicts 378 pubs will be forced to call last orders permanently across England, Wales and Scotland. Currently, the scorching weather has provided a welcome lift for pub trade as Brits rush to beer gardens to soak up the sun with a refreshing drink. However, most of the of cash flowing into pubs is making its way straight to the Treasury, industry experts explained. The association revealed that for every £3 spent at a pub, £1 heads directly "to the tax man". The BBPA also highlighted the knock-on impact these shutdowns will have on hospitality employment, breweries and even agricultural workers. The BBPA's statistics represent a troubling jump from last year's data, which recorded 350 pub closures. The organisation attributes this surge to hefty business rates imposed on establishments alongside other pub-specific expenses such as beer duty and VAT. Compounding matters is the employer's national insurance contributions hike introduced in April and fresh waste disposal regulations that have ramped up expenses for glass bottle recycling. BBPA members produce 90% of British beer and operate over 20,000 pubs, according to Sky News. The association cautioned that these closures could result in more than 5,600 job losses. Emma McClarkin, the chief executive of the BBPA, said: 'Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes. "For many it's impossible to make a profit which all too often leads to pubs turning off the lights for the last time. When a pub closes it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy. "However, it's not too late to change this sad state of affairs. We know Government recognises the economic and social value of pubs and we're not asking for special treatment, we just want the sector's rich potential unleashed. "We're calling on Government to proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR costs, and cut beer duty." By reducing cumulative tax and regulatory burdens on the industry, the government could drive more investment and jobs. While also safeguarding venues beloved by the public and in some cases are the last remaining establishments for communities to get together, according to the trade body. The association noted that pubs are often disproportionately affected by business tax rates in particular. These are based on a property's value, estimated by the Valuation Office Agency in terms of how much it would cost to rent the premises. Pubs, typically housed in high-value buildings, often operate on slim profit margins. With the added burden of extended producer responsibility costs, the pub sector has shelled out an extra £60million a year, as reported by The Guardian. The Labour government has confirmed plans to overhaul the existing business rates system. However, the industry is still eagerly awaiting an interim report that was due over the summer.
Western Telegraph
4 hours ago
- Western Telegraph
Loyalist bonfire on site with asbestos lit despite warnings
Effigies of the Irish rap group Kneecap topped a different bonfire in south Belfast, while there was condemnation at the placing of Irish flags and sectarian slogans on other pyres in loyalist neighbourhoods. Elsewhere, the Northern Ireland Fire and Rescue Service also tackled a gorse blaze in the Belfast Hills off the Ballyutoag Road. Firefighters tackle a blaze in the Belfast Hills off the Ballyutoag Road late on Friday night (Rebecca Black/PA) The bonfire at Meridi Street, off the Donegall Road in south Belfast, had been the focus of warnings, political rows and legal challenges throughout the week. Earlier on Friday, Stormont Environment Minister Andrew Muir urged that the bonfire on a site that contains asbestos and is also close to an electricity sub-station, which powers two major hospitals in the city, not be lit. However it was lit as planned late on Friday while hundreds of other bonfires were also set alight in the July 11 tradition ahead of the Orange Order's July 12 parades on Saturday. Effigies of controversial Irish rappers Kneecap above a message in the Irish language, which translated into English reads 'Murder your local Kneecap' following comments made by the Irish rappers about Tory MPs, placed on a bonfire on Roden Street in Belfast (Niall Carson/PA) Another bonfire nearby at Roden Street was topped with effigies of Kneecap, as well as a sign written in the Irish language. A bonfire in Eastvale Avenue in Dungannon, Co Tyrone, features the group on a poster with the wording 'Kill Your Local Kneecap', seemingly in response to a clip that emerged from a gig in 2023, which appeared to show a member saying: 'The only good Tory is a dead Tory. Kill your local MP.' There was also criticism of the placing of Irish flags and sectarian slogans on a number of bonfires including one in the Highfield area of west Belfast. A bonfire is set alight in the Highfield area of west Belfast on Friday night (Rebecca Black/PA) A small number of bonfires were lit on Thursday night, including the controversial pyre in Moygashel, Co Tyrone, which had been widely criticised by political representatives and church leaders after it was topped with an effigy of migrants in a boat. In a statement released ahead of the fire being lit, the PSNI said they were investigating a hate incident in relation to the fire. Effigies of migrants in a boat burn atop a bonfire at Moygashel, Co Tyrone, ahead of events to mark the Twelfth of July (Niall Carson/PA) The boat on top of the bonfire contained more than a dozen life-sized mannequins wearing life jackets. Below the boat were several placards, one saying: 'Stop the boats', and another saying: 'Veterans before refugees'.
