Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the risk of increased electricity prices in Wales under the proposals to introduce zonal pricing of electricity in the UK.

The Government have not yet taken a decision on Zonal or Reformed National pricing. Zonal pricing has the potential to reduce bills for consumer across Great Britain, and we are currently conducting quantitative and distributional analysis to understand the impacts of zonal market design options on consumers, including those in Wales. A cost-benefit analysis will also inform policy decisions and help conclude how effectively the options meet the objectives.

Zonal pricing could be implemented with varying degrees of consumer exposure. We are working closely with the Welsh Government to understand how any potential REMA reforms could impact Welsh consumers and industry, and this will be taken into account as part of the final decision-making process.