Zonal pricing - arguing over the scraps

Primary Author or Creator:
William Thomson
Publisher:
The National
Date Published:
Type of Resource:
Newspaper article
Length (Pages, words, minutes etc...)
1 page
Fast Facts

The author argues that zonal pricing would not cause the significant harm to the Scottish economy which the opponents of zonal pricing say it would.

More details

Here Thomson argues that location of wind turbines is determined by more than just pricing. 

The number of days when the wind is suitable, the average strength of the wind, are arguably more important than other factors. Given that the fixed costs (interest rates, cost of equipment etc) are the same no matter where a wind farm is located, it is more benficial to locate where the wind is strong than where the price is slightly higher.

In that context, zonal pricing is unlikely to have the detrimental effects on the Scottish economy claimed by the companies arguing against zonal pricing.

English