Energy News

Where you live determines your energy prices

Thursday 20 October, 2011

By Martin Fagan

Households face a postcode lottery on energy prices that can cost them up to £180 extra a year

Households seeking to switch energy suppliers face a postcode lottery that sees energy prices vary wildly depending where in the UK they live, says uSwitch.com.

The independent price comparison and switching service discovered one supplier charging customers in one area up to £180 a year more than its customers living elsewhere, even though they were on the same energy plan, paying by the same method and using the same amount of energy.

Regional pricing leads to winners and losers, with households in Cardiff (the Swalec region) paying on average £1,108 a year, making it the most expensive energy region in the country. The cheapest place for energy is Brighton in the Seeboard region, where £1,060 a year is paid on average.

uSwitch.com says the impact of this postcode lottery is at its most pronounced when looking at suppliers' most competitive tariffs - their cheap online energy plans - as there is a stark difference in the amount people will pay based on where they live.

This regional pricing policy sees an E.ON Save Online 10 customer living in Brighton paying £984 a year on average. However, another E.ON customer on the same plan but living in London will pay £1,164 a year - £180 a year more.

"When it comes to the most competitive energy prices in the market, consumers face a postcode lottery - the price they pay literally does depend on where they live,” said Ann Robinson, director of consumer policy at uSwitch.com.

"And consumers cannot assume their local supplier will automatically be cheaper - not one supplier currently offers their most competitive price in their incumbent or ‘local' region. This is why it's so important for households to shop around to make sure they are getting a fair deal."

Even though householders can't help where they live, uSwitch.com says households can limit the impact of the postcode lottery by ensuring they are with the cheapest supplier in their area.

Even in Cardiff, the most expensive region, uSwitch.com says there is £106 difference between the cheapest and most expensive supplier. In Brighton there is £149 difference in prices between suppliers, while in Bristol this stretches to £180 a year.