Confused.com - Energy providers charge more to loyal customers

New research from Confused.com has revealed energy providers are charging customers more in their host regions than they do everywhere else in the UK.

It is estimated 33%1 of domestic electricity customers remain faithful to their home supplier.

The worst offender is nPower, who charge those in Yorkshire 12% more than their average price across other regions, amounting to an extra £48 a year. EDF are the only angels amongst providers, they do not apply any extra charges to their London region, and in fact the average price comes out £2 cheaper per year than their competitors.

Gareth Kloet, head of energy at Confused.com, says ‘Our research suggests that despite fierce competition in the energy market, the energy suppliers continue to be more willing to compete on price in an attempt to gain new business than they are in retaining and rewarding loyalty in their old monopoly trading regions.

'Out of area' pricing is still more competitive than 'in area' prices and therefore the age old rule about shopping around and switching supplier in order to save money is as strong today as it was over a decade ago."

Since the domestic electricity market was opened to competition in 1998, energy companies have no longer held a monopoly over the supply for any single region - thus enabling consumers to shop around for the best deal regardless of their postcode.  However, the research from Confused.com reveals how energy companies seem more interested in playing away than helping those at home.

Confused.com is urging customers to take the initiative and make the most of the open marketplace rather than accepting what they're given if they want to avoid being exploited for their loyalty.  By shopping around, customers may be surprised by the amount they could save either by changing  suppliers, opting for a more efficient payment method or switching to an online tariff via a consumer focus accredited energy price comparison website like Confused.com.