MoneySavingExpert reveals homes in THIS area could be paying £72 more for gas and electricity

Did you win the energy postcode lottery?
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  • 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.

    Related: Energy vampire – we explain what one is and why it could be costing you £6,500

    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.

    gas and electricity prices

    Image credit: Lizzie Orme

    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
    East Midlands £1,145
    Yorkshire £1,150
    North East £1,157
    Scottish Power £1,162
    Midlands £1,171
    North West £1,172
    Eastern £1,172
    London £1,177
    Scottish Hydro £1,180
    South Wales £1,184
    Southern £1,187
    South East £1,200
    North Wales & Cheshire £1,214
    South West £1,217

    ‘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.

    gas and electricity prices

    Image credit: Colin Poole

    ‘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.

    Related: Renters are missing out on £41m of energy savings because of this one misconception

    So why not get on those comparison websites and see if you could score a better deal?

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