Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of zonal energy pricing in Dumfriesshire, Clydesdale and Tweeddale constituency on household energy bills.

Through the Review of Electricity Market Arrangements (REMA), the government is continuing to assess options for strengthening locational and operational signals in the electricity market. This includes measures which could be implemented under national pricing, as well as a zonal pricing option.

Zonal pricing has the potential to deliver large consumer benefits by creating a more efficient energy system. It would result in a smaller, more efficient power system reducing the need for new power stations and lower the amount of new network that needs to be built.

However, we recognise that implementing zonal could also create uncertainty for investors.  We are considering the balance between potential consumer and system benefits from enabling greater demand-side flexibility, potential distributional impacts, and the future trajectory of network charging which already introduces regional variations in consumer bills.