Proposals to split Britain’s electricity market so that prices differ by region risk pushing up manufacturers’ costs and deterring investment, some of the UK’s largest trade groups have warned the government. UK Steel, Make UK, RenewableUK and the Global Infrastructure Investor Association have written to ministers saying they are worried that the proposals, developed by the Conservative government, could “increase the risks of de-industrialisation”.
Guy Newey, chief executive of Energy Systems Catapult, the innovation centre, said the market needed “urgent reform”, adding: “Zonal pricing is already common in a huge number of international markets and has driven down costs for consumers.
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