Your post code has an impact on the amount you pay for your gas and electricity. Different regions of the United Kingdom pay different energy prices per kWh. In this regional energy price guide, you will find out why this is the case and what the regional price differences are.
So, let’s start with the most obvious question:
Why are there regional price differences?
Regional price differences exist for the main part because energy suppliers and utility companies are allowed to set their own gas and electricity prices and some areas of the United Kingdom think little of their regional energy price, thinking they are all the same, so energy suppliers actually receive very few complaints about regional price differences and as a result, there is little pressure on them to offer a single flat price for the whole of the United Kingdom.
There is more to it than that, though. Supply and demand has a big impact on your regional energy price – how much energy the company actually sells in your region determines the regional price. The more energy the supplier sells, the less it goes for. So regions of the United Kingdom that aren’t very popular with a supplier tend to be short-changed. Another reason why there are regional energy price differences is because the amount of energy suppliers but from generators in different regions differs. Lastly, distribution networks charge energy suppliers a significant fee. These fees differ from region to region and of course, the cost is passed onto the consumer.
How different are energy prices across regions?
Price differences between regions can be substantial and that is the case for both electricity and gas (although the differences in gas prices per region are lesser). For example, electricity in London per kWh is 9.55 pence. In North Wales, the price per kWh is 11.70 pence. That’s a staggering 2.2 pence more. The cheapest regions in the UK for electricity are London, Southern England and the South East. Gas in London per kWh is 3.43 pence while in the West Midlands, the price per kWh is 3.42 pence. Overall, gas prices are actually more in line across regions than electricity prices are.
The three most expensive regions for electricity are:
1. North Wales at 11.73 pence per kWh
2. North Scotland at 11.46 pence per kWh
3. South Wales at 11.13 pence per kWh
The three cheapest regions for electricity are:
1. London at 9.93 pence per kWh
2. Eastern England at 9.93 per kWh
3. South East England at 10.05 pence per kWh
These electricity prices were correct as of the 1st November 2015. More recent regional pricing figures may be available at the Statistics at DECC (Department of Energy & Climate Change) page on the Government website. You can also request the latest figures from the DECC if you like.