Miliband: Southerners may be charged more for energy

Ed Miliband has confirmed the government is looking at plans to charge homes in the South more for electricity after critics dubbed the plans a postcode lottery”.

- MILLIE COOKE KATE DEVLIN

The "zonal pricing" system would mean different regions are charged different rates for energy, with prices being determined by supply and demand in each area. With Scotland benefiting from greater wind supplies, it’s likely that homes in the South could face higher bills as a result of the scheme.

The energy secretary said ministers will “make a calm and considered decision” on the issue, arguing the government’s main priority is to “cut bills” in a “way that’s fair”.

But the plans have been dubbed “madness” by Labour donor and eco-tycoon Dale Vince, who warned it would create “complexity, delays and unfairness”.

Asked about the reports, the energy secretary told Sky News: “This is a very complicated issue that you’re referring to that my department is looking at around so-called ‘zonal pricing’. Look, I’ll be honest with you, we’re still looking at the details of this, which is something we’ve got to really, really get right, and we’re studying in detail the effects.