Proposal to vary electricity charges in England, Wales and Scotland based on supply and demand dropped in favour of ‘fair and affordable’ single price

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The government has abandoned plans for “zonal pricing” that would have charged electricity users in the south-east of England more than those in Scotland, saying that a single national price would help ensure the system was “fair, affordable, secure and efficient”.

The energy secretary, Ed Miliband, had been considering proposals for zonal pricing that would mean different parts of England, Wales and Scotland being charged different rates for their electricity, based on local supply and demand.

It was intended to encourage heavy electricity users to relocate to areas that have more generation such as Scotland, where windfarms sometimes have to switch off because of a lack of demand.