Customers 'paying for loyalty to local energy suppliers'

Consumers are paying up to 33% more by staying loyal to their local energy supplier, new figures show.

Energy customers are paying up to 33% more on their bills by staying loyal to their local suppliers, it is claimed.

New research from uSwitch.com shows suppliers charge an average of 6% higher in their home regions than to other customers.

"The downside is that suppliers are charging local customers a loyalty tax, but the upside is that they are providing a really good incentive for households to switch, which is what competition is all about," commented Ann Robinson, Director of Consumer Policy at uSwitch.com.

Using the price comparison site, people can make sure they are getting the best deal for their needs.

The statistics show that in seven out of 14 electricity regions, the incumbent supplier is the most expensive, with consumers collectively forking out an additional £681 million on their bills.

The site recently said that households are becoming more energy-efficient in a bid to slash the cost of their bills.