Energy News

Energy prices are a ‘postcode lottery’

Energy prices are a ‘postcode lottery’

Thursday 14 May, 2009

By becca.talbot@consumerchoices.co.uk

Customers are being urged to compare energy tariffs following research that annual electricity prices from Britain’s biggest suppliers can vary by as much £147.

Customers in some areas of the UK are paying up to £147 more for their electricity than those living in other regions, according to new figures from uSwitch.com.

Consumers who are still with their regional electricity board are being urged to switch to another supplier to avoid paying a ‘loyalty tax’.

Ann Robinson, director of policy at uSwitch.com, said: “Consumers have to understand that there is no reward for loyalty. The cheapest prices and best deals are being offered time and time again to those who are prepared to change suppliers.”

The news comes only days after British Gas (www.britishgas.co.uk) promised to be offer the cheapest electricity prices in every region, challenging local suppliers and shaking up competition.

All suppliers operate a regional pricing policy for electricity, charging customers different prices according to where they live.

This means that households face a postcode lottery over electricity prices. The difference between the most expensive supplier in the most expensive region (£482 a year for npower (www.npower.com) customers in south Wales) and the cheapest supplier in the cheapest region (£335 for British Gas customers in Yorkshire) is £147 a year.

Chris Eagle, commercial manager at EnergyChoices.co.uk advises: “You could make huge savings on your energy bills by switching suppliers, so compare the market for the best tariff to suit your needs. Review your current supplier and your payment method to see where savings can be made.”

He adds: “You can save hundreds* of pounds on your energy bills by switching to a better deal. Compare energy prices today and see how much you can save.”



* Between 15 March 2009 and 13 May 2009, customers using our service saved an average of £155.59. The maximum saving was £2,249.

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