Energy price cap update on zonal energy regional pricing
While this isn't new - the Energy Price Cap already has regional pricing for certain areas - Google searches for 'zonal energy pricing' have skyrocketed.
Here's all you need to know about what a zonal energy pricing system could look like and how it could be implemented.
So, what is zonal energy pricing, and who would be its winners and losers?
Les Roberts, energy expert from Bionic, explains: 'Regional energy pricing, or zonal energy pricing, is set to be one of the biggest changes to the UK electricity market in over 35 years.
'The system, if approved by the government, is set to transform the UK's energy market, aiming to make the system more efficient by creating regional energy markets."
What's going to happen to the energy Price Cap & is it worth getting a fix. Here are the latest predictions compared to the cheapest fix. The DOWN 8-9% July prediction is pretty solid, after that it's a bit crystal ball gazing.
To find ur cheapest fix use https://t.co/4ikTwuGFTQ pic.twitter.com/RGtmuNupmz — Martin Lewis (@MartinSLewis) April 30, 2025
What are regional energy markets?
Regional energy markets are based on the cost of generating and transmitting electricity in each zone, rather than a blanket cost for the whole nation.
'In areas where renewable energy sources are in abundance already, such as Scotland, prices are set to fall by up to 8% in the proposed scheme," says Les.
"However, in areas such as London and the South, where demand for electricity and energy is high and electricity often needs to be transmitted over long distances, prices are predicted to rise by 2.4% under regional energy pricing.'
(Image: Bionic)
Analysing the proposed zonal energy scheme, based on monthly utility bills for UK cities (electricity, heating, cooling, water, garbage) for 85m2 Apartment with percentages and proposed regional zones based on research provided by LPC Delta, Bionic has predicted which UK cities will benefit the most and the least from the regional energy pricing scheme.
Birmingham would benefit most from the regional price increase, despite the new scheme proposing a predicted 2.4% increase in energy costs.
London is set to rank 5th under the regional pricing scheme, with bills predicted to increase by 2.4%, taking the average monthly bill cost to £238.77.
Surprisingly, Aberdeen is still set to have some of the highest utility bills in the UK, despite the proposed zonal energy scheme set to reduce costs by 8%.
Les says: 'If implemented, regional energy markets are set to transform the UK's energy market, changing not just how much people pay, but also how and where new energy infrastructure is developed. The scheme is set to incentivise regional investment in clean energy projects and has the potential to accelerate the UK towards its 2050 net-zero target.'
Recommended reading:
What is the energy price cap and when does it change?
The term is quite confusing, and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more.
The cap was introduced on 1 January 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off.
The next change is due to be announced later this month and come into force on July 1.
But it only limits what you pay for each unit of gas and electricity that you use.
It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on.
The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge if you're on a standard variable tariff.
The energy price cap also sets a maximum daily standing charge.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
4 hours ago
- Reuters
Tech firms warn 'Scattered Spider' hacks are targeting aviation sector
WASHINGTON, June 27 (Reuters) - Tech companies Google and Palo Alto Networks are sounding the alarm over the "Scattered Spider" hacking group's interest in the aviation sector. In a statement posted on LinkedIn, opens new tab on Friday, Sam Rubin, an executive at Palo Alto's (PANW.O), opens new tab cybersecurity-focused Unit 42, said his company had "observed Muddled Libra (also known as Scattered Spider) targeting the aviation industry." In a similar statement, Charles Carmakal, an executive with Alphabet-owned Google's (GOOGL.O), opens new tab cybersecurity-focused Mandiant unit, said his company was "aware of multiple incidents in the airline and transportation sector which resemble the operations of UNC3944 or Scattered Spider." Neither executive identified which specific companies had been targeted, but Alaska Air Group-owned Hawaiian Airlines and Canada's WestJet have both recently reported being struck by unspecified cyber incidents. Neither company has gone into detail about the intrusions or commented on any potential links between the incidents and Scattered Spider. The loose-knit but aggressive hacking group, alleged to at least in part comprise youngsters operating in Western countries, has been blamed for some of the most disruptive hacks to hit the United States and Europe in recent memory. In 2023, hackers tied to the group broke into gaming companies MGM Resorts and Caesars Entertainment, partially paralyzing casinos and knocking slot machines out of commission. Earlier this year, the group wreaked havoc at British retailers. More recent targets include the U.S. .
NBC News
7 hours ago
- NBC News
North American Airlines targeted by cyberattacks
At least two North American airlines have been victims of criminal hackers recently as cybersecurity companies warn that a notorious cybercriminal group has been targeting the aviation industry. Westjet and Hawaii airlines both said in June statements that they are responding to cyberattacks. American Airlines also experienced a tech issue on Friday, though it's unclear if it was related or caused in any way by hackers. 'A technology issue is affecting connectivity for some of our systems and we are working with our partners to fully resolve the issue,' an American Airlines spokesperson said in a statement. 'Though we are experiencing delays as a result, we have not canceled any flights at this time.' Cybersecurity companies that work directly with companies hit by hackers usually refrain from talking about specific victims, citing nondisclosure agreements. But both Google and Palo Alto Networks said Friday that they have observed a particularly effective cybercriminal group, nicknamed Scattered Spider by the cybersecurity industry, that tries to hack companies involved in aviation. Scattered Spider is a loosely affiliated group of young, mostly English-speaking men who are extremely adept at sweet-talking their way into sensitive computer access at large companies. From there, they often hand that access to outside cybercriminals who install ransomware — malicious software that locks up computers, rendering them inoperable — and then demand an extortion payment. The group has been tied to attacks on Las Vegas casinos in 2023 and British department stores earlier this year. After Google warned that Scattered Spider was targeting American retailers, a cyberattack hobbled a top Whole Foods supplier, leading to empty shelves across the country. Charles Carmakal, the chief technology officer of Mandiant, Google's cloud security company, said in an emailed statement that it was tracking 'multiple incidents in the airline and transportation sector' where Scattered Spider had broken in. 'We are still working on attribution and analysis, but given the habit of this actor to focus on a single sector we suggest that the industry take steps immediately to harden systems,' he said. Details on the effects of the attacks on airlines are still sparse. A WestJet spokesperson told NBC News in an email that the company first noticed it had been hacked on June 13 and has made 'significant progress' to resolve it. Hawaiian Airlines said in a Friday filing with the Securities and Exchange Commission that it discovered on Monday that it had been hacked and that 'Flights are currently operating safely and as scheduled.'
Daily Mail
8 hours ago
- Daily Mail
Trump terminates tariff talks with Canada
By Published: | President Donald Trump said he's suspending trade talks with Canada over its plans to continue with its tax on technology firms and added he will let it know its fate on the matter in 'seven days. Trump used fighting words in a Truth Social post attacking America's neighbor to the north, calling the technology tax 'a direct and blatant attack on our country.' The Canadian tax is scheduled to go into affect on Monday. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' Trump said in his post. The digital services tax will apply to companies like Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion bill due at the end of the month. Trump has taken issue with digital services taxes throughout trade negotiations with other countries, calling them 'non-tariff trade barriers.' Canada and the U.S. have been discussing easing a series of steep tariffs Trump imposed on the country. The president accused Ottawa of 'copying the European Union' with the 'egregious' tax. Dozens of countries face a July 9 deadline for Trump's higher tariffs to kick back into place, and have been engaged in negotiations with the US. That group does not include Canada and Mexico. Trump imposed tariffs on America's neighbors earlier this year over fentanyl trafficking and migration and talks with them are being handled on a separate track.
