The government is reforming the electricity system that puts working people first and moves towards clean power, following a consultation in 2022 that decided between keeping a wholesale price for all of Britain or splitting the country into different pricing zones depending on their proximity to where electricity is generated.
The government decided that a single national wholesale price is a better deal for the majority of people, and proposals set out today (10th July 2025) will ensure that everyone can benefit from the switch to clean power.
This decision comes as the government moves closer to its clean power by 2030 target, delivering investment in clean power such as approving projects that could power the equivalent of two million homes, as well as the biggest expansion of new nuclear power in half a century.
Key parts of the reformed national package announced today include the Strategical Spacial Energy Plan, which is to be published next year by NESO following consultation, and will set out how to best spread new energy projects across land and sea in the UK up to 2050, speeding up progress and cutting grid connection waiting times.
Additionally, the government will work with Ofgem to review transmission charges to provide better incentives for investors to build generations where it is needed, and making them more predictable, as they currently change each year, which can cause uncertainty during long-term projects.
The government also intends to improve the efficiency of the power system through accelerating critical network upgrades that, if completed by 2030, could save £4 billion in constraint payments. The government is also working with NESO to lacuna a consultation later this year on further reforms that will help to reduce the need for constraint payments.
Energy secretary Ed Miliband said: “Building clean power at pace and scale is the only way to get Britain off the rollercoaster of fossil fuel markets and protect families and businesses for good.
“As we embark on this new era of clean electricity, a reformed system of national pricing is the beset way to deliver an electricity system that is fairer, more affordable, and more secure, at less risk to vital investment in clean energy than other alternatives.
“Our package of reforms will protect consumers and secure investment as we drive to deliver our clean power mission through our Plan for Change.”
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