Poorest areas hit with highest energy bills

by ReenaSewraz on 23 June 2012  |  7 comments
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Some regions of the UK are suffering disproportionate energy prices because people are sticking with the same supplier.

An alarming report has revealed that the poorest areas in the UK are being hit with the most expensive energy bills.

The Quarterly Price Survey conducted by Energyhelpline.com, an independent price comparison service, has uncovered that there is a postcode lottery when it comes to what energy customers are charged, with prices differing between some regions by as much as £92 a year.

The findings

The study investigated the cost of energy in 14 regions across the UK.

It found that Merseyside and North Wales are charged the most by energy providers, with a typical annual bill totalling £1,373. Those in the West Midlands face the second highest bills at £1,333 a year, followed by Central and Southern Scotland (£1,329), then the rest of North West England (£1,316) and the South West (£1,316).

The cheapest regions, according to the report, were North Scotland (£1,281), the East Midlands (£1,291), London (£1,293), Southern England (£1,294) and the South East (£1,297).

The results show an unfortunate trend where people in areas with higher unemployment, such as Merseyside and North Wales, are footing the highest bills. Meanwhile those in more affluent areas like the South East pay on average £76 less per year.

The explanation

So what’s the reason for this significant variation of energy prices across the UK?

Sadly it seems to be because the 'Big Six' energy companies are charging whatever they think they can get away with in a given region. And if people don't switch, for whatever reason,  then the prices remain high.

The Which? Big Switch campaign highlighted this problem at the beginning of the year when it encouraged people to sign up and have energy companies bid in a reverse style auction for their custom with the best energy tariff they could muster.

Savings through switching

This research highlights yet again how energy customers could get a better deal by switching services rather than sticking with the same supplier.

A typical customer in Merseyside or North Wales could be making a £370 saving on their gas and electricity bills if they switched onto a deal like the first:utility isave v10 energy tariff, which would bring down the annual spend on energy in these areas from £1,373 to £1,003.

The table below show how other regions could benefit from switching onto this market leading deal as well.

Source: Energyhelpine.com

If you want to switch but are baffled by the numerous tariffs or unconvinced you could make a saving try our energy comparison tool which gathers every deal available on the market to find you the best value tariff for your home.

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