If you’ve ever complained about things being more expensive in the south of the UK – from houses prices to a pint, you may want to start adding gas and electricity prices to that list.
Homes in south-west England will find themselves spending £72 more on gas and electricity prices than homes in the East Midlands under the new Ofgem price caps, according to an investigation by MoneySavingExpert.com.
The website looked into standard tariffs of the six largest energy companies – British Gas, EDF, E.on, Npower, Scottish Power and SSE – under the new Ofgem price cap level.
The price cap kicks in on the 1st October this year and will limit the price a supplier can charge per kWH of electricity and gas.
MoneySavingExpert’s investigation found that homes in East Midlands on a standard tariff will pay the least for their energy at an average of £1,145 a year. In contrast, those in the South East will pay the most at £1,217 a year.
This price difference is due to energy prices being divided into 14 energy supply ‘regions’. Each company will then sell energy at a different unit rate in each of these regions based on costs such as using the local gas and electricity wires.
This is why when you’re searching for an energy deal on a comparison website you’re asked to pop in your postcode.
Regional gas and electricity prices under new cap
|Region||Average standard tariff under new cap|
|North Wales & Cheshire||£1,214|
‘These regional differences highlight a postcode, lottery, where living in the ‘wrong’ area could mean you have to pay a lot more for your energy than those in neighbouring regions,’ says MoneySavingExpert.com energy and utility editor Gary Caffell.
So other than moving, there isn’t much you can do about the difference in energy price. But Moneysavingexpert.com explained that there were still plenty of things you could do to save on energy costs.
‘No matter where you live if you’re on a big firm’s standard tariff you’re likely being ripped off. Don’t be fooled by the headlines which say the price cap is dropping, millions could save £100s/y more by switching, so urgently check if you can get a better deal before the colder weather hits,’ advises Gary Caffell.
So why not get on those comparison websites and see if you could score a better deal?