🧭 What Is Zonal Energy Pricing?

The UK is considering a major shift in how energy is priced — moving away from a flat national rate to something called zonal pricing.

In simple terms? Your location could soon influence how much your business pays for electricity.

If you’re in an area rich in renewable energy (like Scotland or the North West), you could benefit from cheaper rates. But if your postcode falls in a high-demand, congested region (like the South East or London), you may be facing higher costs when this reform kicks in.

📅 When Is It Happening?

The UK government is still reviewing feedback from its latest consultation (as part of the REMA — Review of Electricity Market Arrangements). No final decision has been made, but a go/no-go announcement is expected by mid-2025.

✅ Good to know: Any changes would likely be phased in over several years, giving time to adapt.

⚡ Why It Matters to You

Right now, electricity is priced the same across the country. But that model doesn’t reflect reality.

• Wind farms in Scotland are paid to turn off when the grid can’t take the power.
• Businesses in London pay the same rate — even though they’re hundreds of miles from the cheapest power sources.

Zonal pricing aims to fix this — by making electricity cheaper where it's more abundant, and more expensive where it’s in short supply.

📍 Is Your Area Likely to Save or Pay More?

We’ve built a tool to help you find out.

Enter your postcode below and we’ll tell you which zonal region you're likely in. Then check the table underneath to see whether that zone is expected to save or cost more under future market reforms.

👉 Try it now — it only takes a second:

⚠️ What Are the Risks?

Critics have called this a potential postcode lottery — suggesting it may penalise businesses based on location rather than efficiency.

Others warn it could:

• Introduce pricing uncertainty
• Deter renewable investment if not carefully implemented
• Increase bills in the short term due to infrastructure limitations

💬 Our View: Transparency and proactive planning can turn risk into opportunity. We help clients make sense of energy policy — without the jargon.

✅ What You Can Do Now

Here’s how your business can stay ahead of zonal pricing:

1. Know your zone — postcode tool above 👆
2. Review your contract — especially if renewal is within 12 months
3. Consider fixing now — some zones could see sharp cost jumps later
4. Talk to us — we’ll walk you through your options and help you stay in control

👋 Final Thoughts: Be Informed. Be Ready.

Zonal pricing could reshape how UK businesses pay for power — but change doesn’t have to mean confusion. At Smart Energy Company, we help clients make confident decisions in a changing market.

Whether you’re looking to fix your costs, switch suppliers, or just stay informed — we’re here to help.