Iberdrola boss Galan warns UK to quieten down over power price shake-up
Spanish utility chief says proposals for zonal pricing create 'disturbance' at time Britain wants billions of investment
Iberdrola boss Ignacio Galan warned the UK government that proposals to move to zonal pricing of power risks “generating noise” that could imperil billions of pounds of investment in Britain’s electricity system.
The Iberdrola chief today said a debate around a potential switch to zonal pricing, which is strongly opposed by its ScottishPower UK subsidiary and other power groups, risks undermining confidence.
If adopted, the change would split the power market in Britain into geographical zones, with each having different electricity prices based on their respective levels of supply, demand and available grid.
“When something is working well, it’s better not to generate noises that can affect investment,” Galan told analysts on a conference call to discuss full year results.
“The government is already encouraging us to invest almost £200bn ($253bn) in the UK infrastructure.
“I committed with the Prime Minister a few months ago [to invest] £24bn up to 2028.
“For such an investment we need stability and predictability, no noise, no disturbances in a theoretical discussion.”
Galan said any change could not take effect until 2035. “Why generate now a debate about something that cannot be implemented in the next 10 years,” he asked, claiming the change is opposed by large investors and trade unions alike.
Backers of the change claim zonal pricing would encourage generation capacity to be built where it most closely matches demand.
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