Energy companies have been in the news a lot in the last week or two.
First we mentioned about how energy companies were ‘conspiring’ as EDF energy hikes prices up, then we told you about the huge price increase by British Gas and how they were making £5 million a day in profits.
Because of this seemingly unending bad news about energy suppliers, we thought it was only right to tell you how you can limit your gas bill.
But if you were wondering about the huge energy price increases and how it’s going to affect us all, then think again…
This is because we have have different dual fuel bills depending on where we live in the UK!
EDF Energy and British Gas have both raised prices in recent days but did you know that some areas have seen bigger increases than others?
No? Well, let us tell you!
EDF customers in South Wales pay £94.47 more a year than those in the North West for the same energy usage, and British Gas also shows differences. They explain the discrepancy by claiming that transportation costs, (which accounts for about 14% of your average bill), differs across the UK.
For British Gas customers, the biggest difference is £31.23 a year when comparing direct debit paying customers in the Southern and South East areas.
Highs and lows
EDF was the first of the big six energy companies to act when it raised its gas prices by an average of 22% and electricity prices by 17%.
Following the changes, South Wales remains the area with the most expensive dual fuel EDF Energy bills. The South West and South Scotland was the next most pricey. The cheapest areas are the North West, the Eastern region and Yorkshire.
On 30 July, British Gas announced it was raising its gas prices by as much as 43% (an all time high) and electricity prices by 9%.
The UK's biggest domestic energy supplier blamed "soaring wholesale energy prices".
The prices were so high that they only made £992 million in profit this year…boo hoo.
For British Gas dual fuel customers, the Southern and Eastern areas are the most expensive. Those in the Southern area have seen a 30.8% price hike in the latest round of increases. The former Seeboard area of the South East and Yorkshire are the cheapest.
Transport costs
A British Gas spokesman said that the maximum regional variation was + or –0.27% and that there are regional differences in the price changes for those of you paying for your gas and electricity separately. Electricity supply has always been regionally priced in the UK, based on the 14 old supply regions.
The spokesman said that regional gas pricing was reflective of transport and distribution charges applied by regulated local mains operators. Basically, the closer you are to a distribution point, the lower the cost to you.
He added that British Gas previously averaged out these costs when it passed them on to customers, but now transport and distribution costs made up 14% of a gas bill, the company has decided to charge differently in each region.
"Our aim is to be as competitive as possible in each region," he said.
Well, that is one way of describing it!
It just sounds as if the energy providers are trying to justify new and ever increasing ways of getting us to pay even more for our power.