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Charging customers for energy based on location ‘could harm UK industry’ Trade groups warn against government’s idea that those further from power projects should pay more

A plan to redraw the energy market risks undermining Britain’s industrial sector and its mission to attract billions in green energy investments, according to major business groups.
In a letter to Ed Miliband, the energy secretary, trade groups representing some of the biggest investors in green energy and manufacturing have spoken out against the government’s proposal for a “radical” overhaul of the market that could mean higher energy bills for those based farther away from energy projects.

Manufacturing groups including UK Steel and Make UK have joined RenewableUK and Scottish Renewables to warn that the plans would “undermine investment in low-carbon energy” by creating “new risks for clean energy developers”, which would raise the costs of meeting the UK’s clean energy targets.
Under the plans, which were put forward for consultation earlier this year, energy consumers would pay less for electricity if they were based close to electricity projects but more if they were based farther away.

The plans would also affect energy generators, who would earn less for the electricity if they were based far away from homes and businesses but more if they were sited close to areas of higher demand.
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