An energy pricing review that is said to be being considered by Labour could see the UK sub-divided for the purposes of power costs, with some areas in Scotland expected to pay the least.
There is already some regional variation in energy pricing – with households in south-west England paying more than those in the East Midlands, for example.
But new plans being considered could see those in regions that generate more power enjoy lower prices instead.
But much of the rest of Britain would see their average wholesale price higher than the national price, which may lead to higher bills for consumers.
There are three main areas expected to see higher prices.
Source: LCP
Tony Jordan, of energy consultancy Auxilione, said that the driving force behind the plans was to try to incentivise energy generation.
“Currently we have generation in strategic areas and then consumption all over the place – putting a strain on the network.”
“We either increase capacity to move power across the network in a better way, or put generation in places where it doesn’t currently fully meet demand,” he said.
He said: “Renewables are inconsistent, and so when generation drops off – if the wind doesn’t blow, and the sun doesn’t shine – and regions need to import from the broader grid, will they be charged more?
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Read MoreOthers in the sector have been supportive of the mooted changes.
“Zonal pricing will reflect losses and network congestion in wholesale prices, giving a price which more accurately reflects the cost of using electricity in a particular location,” it said.
Ofgem is also supportive of the changes.
“We are quite supportive of that change. So all of us want to see a system where we’re no longer paying wind farms to turn off in the same place where energy charges are high. So we back that.”
Energy bills will rise by an average of £111 per household a year from April, after the regulator announced its quarterly price cap would rise by 6.4 per cent across England, Wales and Scotland.
A Government spokesperson said: “In an unstable world, the only way to guarantee our energy security and protect consumers from future energy price shocks is by moving towards homegrown power.
“We are considering reforms to Britain’s electricity market arrangements, ensuring that these focus on protecting billpayers and encouraging investment. We will provide an update in due course.”
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