Residents in Abergavenny could be paying more than other parts of Wales for their energy bills under new plans to introduce ‘electricity zones’.

The UK Government’s plan is to switch from the current single wholesale price of electricity across the UK to a zonal price tag, which supporters claim will help with the move away from fossil fuels.

The concept is based around the principle that places with more green energy schemes and less demand for power will pay less than those who use the most energy.

However, new modelling carried out on the government’s behalf by LCP Delta places Abergavenny and much of mid Wales in the same price bracket as London.

Plaid Cymru has criticised the model, claiming there is a significant risk of Welsh energy bills rising because of this. Energy spokesperson, Llinos Medi MP, wrote to Energy Secretary, Ed Miliband, this week.

“Wales is an energy rich nation and an exporter of electricity to other parts of the UK. Despite this fact, Wales is also a fuel poor nation, with 45% of households having been in fuel poverty.”

She called for a single Welsh energy zone to be considered.

Meanwhile, Octopus Energy says zonal pricing is the only option on the table that could lead to reductions in bills in coming years.

Experts, including Alistair Phillips-Davies from SSE, have claimed zonal pricing could see consumers paying “£200-£300 more than an equivalent energy household based purely on where they live.”

A Department of Energy Security and Net Zero spokesperson has said zonal pricing will help with moving to homegrown power.

“The only way to guarantee our energy security and protect consumers from future price energy price shocks is by moving towards homegrown power.”

“We are considering reforms to Britain’s electricity market arrangements, ensuring that these focus on protecting bill payers and encouraging investment.”