SSE plc, the Perth-based electricity infrastructure giant, said on Thursday it welcomes the decision by the UK government to retain a national pricing system for wholesale electricity.
The UK government has rejected a controversial plan to divide the UK’s electricity market into zones.
SSE is the biggest listed firm run from Scotland, with a stock market value of around £20 billion and about 14,000 employees.
“This decision provides much-needed policy clarity for both investors and consumers, sending a strong international signal that the UK remains committed to maintaining a stable and investable environment, preserving its global leadership in renewable energy,” said SSE.
“SSE, alongside the overwhelming majority of industry stakeholders, has consistently argued that zonal pricing would introduce unnecessary complexity and risk into the UK energy market at a time when the country needs greater investment in clean power and would have had a detrimental effect on the prices consumers pay for their energy.”
Martin Pibworth, chief executive designate of SSE plc, said: “This decision brings welcome clarity and enables us to get on with investing in and delivering critical clean energy infrastructure, in doing so transforming our energy system and supporting the UK Government’s bold ambitions for clean power by 2030.
“Zonal pricing would have added risk at a time when the UK needed to accelerate its clean power transition, making energy bills more expensive.
“This decision reaffirms the UK as a world-leading renewables market, enabling the efficient delivery of the homegrown energy the country needs.”
Offshore Energies UK (OEUK) also responded to the UK government’s publication of its Review of Electricity Market Arrangements (REMA).
“OEUK says the reforms announced – including the decision to commit to national pricing – bring stability that can help renew investor confidence and build a nationwide network secured by a diverse mix of domestic energy from oil, gas and offshore wind and emerging sources such as hydrogen,” said OEUK.
“Retaining national pricing supports offshore wind and clean energy development in Scotland and across the UK. OEUK is working across industry to deliver the capacity and investment needed to make the forthcoming seventh allocation round (AR7) for offshore wind a success.
“OEUK says the round must secure 8 gigawatts (GW) of power to improve the chances of hitting the government’s Clean Power 2030 targets. OEUK’s Wind Insight 2025 report sets out its recommendations in full.
“The review also sets out reforms to build out new transmission infrastructure and will see the government take on more responsibility for planning the overall energy system and deciding where key sites and connections are located.
“OEUK continues to call for reforms that reduce costs for consumers and manufacturers and enable the UK to build an industrial future with its homegrown energy resources and skilled people. OEUK’s submission to the industrial strategy consultation showed how over £200 billion of business investment could be unlocked this decade across the UK’s energy mix.”
OEUK’s chief executive David Whitehouse said: “The government’s decision to rule out zonal pricing and commit to this reformed national approach provides crucial certainty for investors and is vital for supporting clean growth opportunities, particularly in the UK’s industrial heartlands.
“These reforms mark an important step towards a more sustainable electricity market for the UK. This announcement can help to lay the best path to deliver clean, secure, and competitive domestically produced energy across the nation.
“These reforms are an important stepping stone to the UK’s energy future. It is imperative we now get the other steps right – such as a successful seventh allocation round for the offshore wind industry, enabling firms to create new projects and jobs and keep their operations and people here in the UK.
“To accelerate progress to net zero and safeguard jobs and communities we must also unlock investment in the homegrown oil and gas we need for the decades ahead. Policymakers must back firms with pragmatic policies, including the forthcoming Strategic Spatial Energy Plan, which must back a diverse mix of energy sources that are produced here rather than imported. This is the path to the affordable and secure energy future and economic growth we all want to see.”