Britons face being slapped with higher energy bills depending on their postcode under plans being drawn up by Energy Secretary Ed Miliband, analysts have warned.
Labour ministers are understood to be at loggerheads over sweeping energy proposals that could see certain households pay more towards electricity costs.
Miliband is said to be making his final recommendation to his Cabinet colleagues within the next few weeks before the Government makes a final decision on "zonal pricing".
Under this initiative, different areas in the UK would pay differing payment rates for their electricity based on supply and demand levels in their area.
Ed Miliband has rejected the idea of a "postcode lottery" for energy bills being introduced but research suggests this could be a reality
GETTY / CHATGPT / LCP DELTA
While this would mean households in the north of Scotland would pay some of the lowest market prices in the country, those in the south of England are expected to pay more, according to research conducted by LCP Delta.
In February 2025, the firm published damning figures which suggested that 60 million billpayers in England and Wales would be detrimentally financially impacted by the move.
Furthermore, a recent Opinium survey found that 58 per cent of people in England and Wales oppose zonal pricing, while only 14 per cent are supportive of it. Some 59 per cent of the public see the policy as unfair, whereas only 16 per cent think it would be a fair system.
Furthermore, 72 per cent of those polled said Labour should instead prioritise reducing energy costs for all parts of the country at a flat rate, whereas only 12 per cent believe that the Government should focus on creating regional power markets.
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Here is a full breakdown of how energy bills could change across the UK, depending on region, if zonal pricing is introduced, based on LCP Delta's research:
| Zone | Region | Prices | Bill Impact (%) | Direction |
|---|---|---|---|---|
| A | Northern Scotland | -£20/MWh | ↓ ~ eight per cent | Significant drop |
| B | Northern Scotland | -£18/MWh | ↓ ~ seven per cent | Drop |
| C | Northern Scotland | -£15/MWh | ↓ ~ six per cent | Drop |
| D | Central Scotland | +£3/MWh | ↑ ~1.2 per cent | Mild increase |
| E | Central England | +£6/MWh | ↑ ~2.4 per cent | Moderate increase |
| F | North Wales | +£6/MWh | ↑ ~2.4 per cent | Moderate increase |
| G | West of England | +£6/MWh | ↑ ~2.4 per cent | Moderate increase |
| H | East Midlands | +£6/MWh | ↑ ~2.4 per cent | Moderate increase |
| I | East of England | +£6/MWh | ↑ ~2.4 per cent | Moderate increase |
| J | South East | +£6/MWh | ↑ ~2.4 per cent | Moderate increase |
| K | Greater London | +£6/MWh | ↑ ~2.4 per cent | Moderate increase |
| L | South Coast | +£10/MWh | ↑ ~ four per cent | Highest increase |
Energy bills could rise or fall dramatically if zonal pricing is introduced
CHAT GPT / FIGURES BASED ON RESEARCH FROM LCP DELTA
Responding to reports of potential energy bill hikes if the policy is introduced, Miliband said: "Copper-bottomed nonsense. No decision has been made on this issue.
"This is an incredibly complex question that we are looking at about how we reform our energy market. There are two options, zonal pricing and reformed national pricing. Whatever route we go down, my bottom line is bills have got to fall, and they should fall throughout the country. I’m not about to introduce a postcode lottery."
Jane Cooper, Deputy CEO of RenewableUK, said: "It’s hard to see how the Government could succeed in delivering clean power by 2030 whilst also introducing this complex and controversial scheme.
"The reality is that introducing regional or zonal electricity pricing is likely to lead to higher energy bills for households and businesses in parts of England and Wales – especially in the south of England – as well as disrupting new investment in clean energy.
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GETTY"It would create on a postcode lottery on bills, which understandably worries communities and businesses which might see higher charges."
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