Households pay up to £72 a year extra for energy based on where you live under new price cap

HOUSEHOLDS are paying up to £72 a year more for energy just because of where they live, an investigation by MoneySavingExpert has revealed.

It has found that energy customers in the SWEB region of south west England will pay up to £72 more than those living in the East Midlands, despite a new lower energy price cap coming into force next month.

MSE’s analysis shows that where you live affects what you pay for energy under the new price cap

This is because gas and electricity prices ares split up into 14 energy supply “regions”, which means that firms can charge customers different prices.

The money saving website analysed data based on standard tariffs from the big six energy firms.

The energy price cap – which is due to start next month – means that firms cannot charge more than £1,179 a year down from £1,254 a year on average.

But customers can still save up to £359 a year by switching from a standard tariff to a cheaper deal, MoneySavingExpert said.

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In April, the energy regulator Ofgem increased the energy price cap – costing millions of households over £100 a year.

But in August it announced that the cap would fall by an average of £75 a year, due to lower wholesale costs.

How to switch energy suppliers and save money now

MILLIONS of households across the UK have never switched and are stuck paying more than they should.

Have a recent bill to hand – this will have all the details you’ll need, such as the name of your tariff, your recent spending etc.

If in doubt, call your provider and ask them to move you to their cheapest tariff.

Better still, use an impartial copmarision website like uSwitch, Citizen Advice or to find the very best deal for you.‘s Cheap Energy Club will let you set up an email reminder that alerts you when cheaper deals become available.

The cheapest tariffs are usually found online and are fixed deals – meaning you guarantee how much you’ll pay for a set amount of time, usually 12 months.

Switching to a cheaper supplier could cut your bill by up to £300 a year.

The amount you pay varies depending on where you live and how much energy you use.

Gary Caffell, energy and utilities editor at, said: “These regional differences highlight a postcode lottery, where living in the ‘wrong’ area could mean you have to pay a lot more for your energy than those in neighbouring regions.

“Don’t be fooled by the headlines which say the price cap is dropping, millions could save £100s a year more by switching, so urgently check if you can get a better deal before the colder weather hits.”

Last year, Brits were so reluctant to change energy provider that over 9million households didn’t do so between 2012 and 2017.

In fact, some households are losing out on £220 a year – all by not switching their energy supplier.

Earlier this year, the Big Six energy firms charged almost exactly the same price under the new price cap – spiking rumours of collusion.

Read how Theresa May is in trouble again after her energy cap is branded a joke.

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