RenewableUK Cymru is sounding the alarm over a new government plan that could see Welsh energy bills soar under a zonal electricity pricing scheme.
The proposal, which would divide the UK into different pricing zones, risks turning Wales into one of the most expensive places for electricity—threatening investment, heavy industry and clean energy growth.
Modelling by LCP Delta suggests Wales could be split into four zones, with three facing high prices due to high demand and limited local generation.
One option could lump south Wales into the same zone as London, while mid and north Wales could be grouped with Manchester and Leeds, forcing Welsh businesses and households to pay more.
“This scheme turns energy pricing into a postcode lottery but Wales isn’t just taking a gamble—it could be being dealt a losing hand, facing higher bills, stalled investment, and an uncertain energy future,” said Abi Beck, Head of Strategic Communications at RenewableUK Cymru.
The impact could be devastating for Welsh industry.
Port Talbot Steelworks (pictured), currently transitioning to a cleaner electric arc furnace, cannot simply relocate to a lower-cost region like Scotland to offset rising electricity costs.
“Everyone wants lower prices and greater incentives for renewables. The most effective way to achieve this is by investing in modernised grid infrastructure to move green energy to where it’s needed, powering homes and businesses alike,” Beck added.
With no clear plan from the government on how zones will be drawn, concerns are mounting that Wales could be left footing the bill.
