‘Cruel’ energy postcode lottery means poorest areas pay more

Research finds households in the poorest and coldest parts of Britain pay the most for their energy.

The poorest regions in Britain pay the most for their energy in a 'cruel' postcode lottery.

That's according to new research from energyhelpline.com, which found that North Wales and Merseyside are the worst off, typically paying £1,321 a year for gas and electricity. That's a whopping 7% more than the East Midlands which is cheapest (£1,238).

The second highest bills are in Northern Scotland, the coldest area in Britain.

Here’s how the postcode lottery shapes up:

Region Name	Region of Britain	Typical Annual Gas and Electricity Bill
Manweb	Merseyside and North Wales	£1,321
Scottish Hydro	North Scotland	£1,307
Midlands	West Midlands	£1,295
Yorkshire	Yorkshire	£1,295
Swalec	Central and South Wales	£1,290
Seeboard	South East England	£1,283
London	London	£1,282
Southern	Southern England	£1,274
Norweb	North West England	£1,273
Average		£1,280

Source: energyhelpline.com, June 2015

These regions have among the lowest earnings in Britain, with hundreds of thousands of people earning less than £400 a week. For example, Porthmadog and Ffestiniog in North Wales has the lowest average weekly wage per head at £310.80. Three of the 10 poorest areas in Britain are found in North Wales, while four are found in Northern Scotland.

On top of that, people on the lowest incomes are often on prepayment meters, which excludes them from the most competitive energy deals too.

Mark Todd, director of energyhelpline, described the situation as a "cruel postcode lottery", adding: "There is simply no justice when it comes to energy pricing."

The latest Government figures show over two million households spend more than 10% of their income on keeping their homes properly heated. Little wonder that a quarter of us cut back on heating to save money, according to energyhelpline.

Switch now!

The best way to beat these high prices is by switching energy supplier.

Energy switching can save you hundreds of pounds a year. Households in Yorkshire could stand to save the most at £435 a year, according to energhelpline's figures, with the North West saving the least at £285. Residents in the long-suffering North Wales and Merseyside area could save a substantial £377 a year if they change supplier.

To help you make the switch, we’ve gathered the top 10 deals on the market right now:

Energy Supplier	Tariff Name	Average UK Price
GB Energy Supply	Premium Energy Saver	£870.00
First Utility	The Big Deal Collective Switch April 2016	£892.49
Extra Energy	Fresh Fixed Price Sept 2016 v1	£913.00
First Utility	iSave Fixed July 2016	£913.44
Extra Energy	Clear Fixed Price March 2016 v5	£919.00
Extra Energy	Bright Fixed Price Jan 2016 v9	£919.00
Green Star Energy	Rate Saver 12 Month Fixed 1506	£926.00
Npower	Price Fix May 2016	£927.00
First Utility	iSave Fixed May 2016	£933.49
Scottish Power	Online Fixed Price Energy June 2016	£941.20

Source: loveMONEY energy centre

For more advice, head over to How to switch your energy supplier.

More on energy:

Smart meter rollout ‘needs private sector help’

Energy tariffs ending in June: save by switching now!

The UK’s worst energy companies

Big Six ordered to cut bills as energy debts rise