'Postcode lottery' could affect how much households pay for energy - 21/11/2011

While most people could benefit from cheaper gas and electricity deals if they compare energy prices to find the best deals, individuals living in some parts of the country may be especially able to see savings.

This is because research conducted by Energyhelpline.com has revealed there is a postcode lottery in the UK that means people in certain parts of the nation may be paying more for their gas and electricity supplies than others.

While the average dual fuel bill across the UK for people who have never switched their supplier is currently £1,317 - the highest level on record - there is a significant variation on a regional basis.

Energyhelpline.com's study found consumers in Merseyside and north Wales pay the most for their gas and electricity supplies, with a typical annual cost of £1,373.

By contrast, individuals living in the Scottish Highlands enjoy the cheapest combined bills, paying £1,282 a year on their tariffs - a difference of £91.

Mark Todd, director of EnergyHelpline.com, stated there are several reasons for the variation across the country, including the weather, local pricing policies, proximity to pipelines and transportation costs.

"Obviously, customers can't control some of these variables but what they can do is look at how energy efficient their homes are and also seek out the best deals online or on the phone using price comparison services," he said, adding: "Spending a few minutes could save a lot of pounds."

He noted it is a cruel twist that many of the more expensive regions tend to be in the north of England and the Midlands, where incomes are typically lower than in the south.

This means people in these areas could end up spending a far larger percentage of their income on keeping warm compared with those in the wealthier south of the country - where there is also less demand for gas supplies due to the warmer weather usually experienced in these regions.

However, by performing an energy comparison is order to identify cheaper deals, almost everyone could cut their bills, with those in Merseyside and north Wales able to reduce their expenses by £330 if they switch to First Utility's isave v9 deal.

But it is not just in the most expensive parts of the UK where savings can be made. For example, 79-year-old Maureen from Reigate was able to save £192 on her annual bills, as well as fix her prices until 2013, by switching her supplier from British Gas to EDF Energy.

Elsewhere, Harrogate resident Glenice saved £167 by moving from Scottish Power's standard tariff to the company's fixed-rate deal, which also freezes her prices until 2015.

Mr Todd added that he "cannot stress enough" the importance of ensuring a person is on the cheapest possible deal, particularly as winter begins to bite.

He explained that complacency among consumers can lead to some regions becoming "profit hot spots" for energy suppliers, as loyal customers stick with the same company and tariff and do not explore the alternative options that are available to them.

Energyhelpline.com's research comes as all of the Big Six suppliers have implemented their latest round of price increases ahead of the colder months.

These increases have compounded a "year of misery" for energy customers in the UK, as 2011 has seen bills jump by an average of 21 per cent - or £224 per household.

If you want to find out more about how to compare energy suppliers and save up to £389 in minutes, click here.

Share this story with your friends:-