Rewiring the market: What zonal electricity pricing means for the UK

The UK electricity market is approaching its most significant overhaul in decades. At the heart of the Review of Electricity Market Arrangements (REMA) is a controversial proposal: scrap the single national power price and replace it with zonal pricing, where electricity costs vary by region. The aim is to cut costs and boost investment by better reflecting local grid constraints and supply-demand dynamics. But the stakes are high. The shift could bring greater efficiency—or trigger investor uncertainty, political backlash, and regional inequality. As the UK weighs its options, hard-won lessons from Norway, Sweden, and beyond deserve close attention.