Implementing zonal pricing will take at least five years, the government has said. The Department for Energy Security and Net Zero (DESNZ) has committed to explore locational pricing plans further as part of its review of electricity market arrangements (REMA), however it has warned that implementation “would be complex and take significant time”. The REMA consultation documents further state that there are several “implementation challenges” with zonal pricing including the impact on trading arrangements, network access rights and market liquidity.
Zonal pricing will take at least five years to implement
