Energy Q&A: Why do energy rates differ by region?

Did you know that your energy costs are impacted by what part of the country you live in?

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Did you know that part of your energy bill is dependent on what part of the country you live in?

In fact, figures from DECC show that the average electricity unit cost in Canterbury is 14.06p, rising to 14.39p in London, 15.25p in Cardiff, and 16.55p in Belfast.

This is sometimes referred to as the “postcode lottery”, and it boils down to three major factors:

  • How much the energy company sells in your area
  • How much it buys from generators in your area
  • The different charges imposed on the energy supplier by the local distribution network in your area

If you’re curious about which areas are the cheapest for energy, and which areas are the most expensive, we can answer that as well: Merseyside and the South of Wales have some of the highest energy prices on average, while the North of Scotland and East Midlands have the lowest on average.

You may not be able to do much about your post code, but you can ensure you're on the cheapest plan available to you by running an energy comparison.

Compare your energy bills and save up to £383!

To find out more about regional energy pricing, including how the UK compares to Europe and what other costs make up your energy bill (such as network costs) read our Regional energy prices guide.

Related info:

What is a tariff comparison rate (TCR)?

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