Location, location, location …and your energy bill

Where you live can determine how much you pay for gas and electricity, warns Switch with Which?, the home energy switching service from consumer champion Which?

Since January, npower has varied gas prices across the UK to reflect the cost of piping it around the country, creating a postcode lottery for bill payers. ScottishPower have introduced similar systems, and British Gas says it won’t rule out regional pricing.

Previously, only electricity costs were subject to regional variation, but energy suppliers are now blaming piping and infrastructure costs for regional gas pricing. As gas suppliers adopt this pricing structure and with the recent price increases, many people have seen their home energy bills rising above inflation, smashing the £1,000 per year mark.

Siobhan Parker, Switch with Which? says: “The adoption of regional gas prices by some suppliers further emphasises price variations around the country. Npower has announced an average gas increase of 12.8 per cent, but customers living in regions such as London and the East Midlands are being hit with a much bigger price rise of 23.8 per cent. People must vote with their feet and seek out the best deal to combat the effects of what is ultimately a postcode lottery.”

Moving house is one drastic solution to change tariff and lower energy bills, but there is an easier option. Websites such as www.switchwithwhich.co.uk allow people to compare thousands of tariffs on a regional basis to find a cheaper supplier.

With an estimated 40 per cent of people still on standard tariffs, Switch with Which? recommends that people with internet access consider an online tariff. These can save hundreds of pounds because the energy companies pass on the savings from reduced paperwork. Paying by monthly direct debit and opting for a dual fuel tariff could further reduce people’s annual energy bill. Consumers could also avoid future price rises by switching to capped or fixed tariffs.