Ceramics UK Welcomes Government Decision to Rule Out Zonal Electricity Pricing

Ceramics UK welcomes the Government’s decision to rule out zonal pricing of wholesale electricity as part of its Review of Electricity Market Arrangements (REMA) - a move that follows sustained lobbying from our sector over recent years.

Throughout the REMA consultation process, Ceramics UK has consistently raised concerns about the potentially damaging impact of zonal pricing. Depending on how such a system might have been implemented, it risked driving up wholesale electricity costs in regions with less renewable power generation. For the UK ceramics industry - where production sites are often rooted in place due to access to key raw materials (such as clays), skilled labour, and complex supply chains - this would have posed a significant threat to competitiveness and the viability of long-term investment.

We are pleased to see that Government has listened to industry voices and opted instead for national-level reforms that promote a fairer, more stable energy pricing system for all regions. This approach offers a more balanced path forward for energy-intensive industries like ceramics, which are already working hard to decarbonise while maintaining economic and industrial resilience.

Ceramics UK remains committed to engaging with policymakers to ensure that future energy market reforms support industrial decarbonisation, secure supply chains, and drive sustainable growth across UK manufacturing.

Date Posted: 10th July 2025