Energy Suppliers Charging Loyal Customers More
Published: 23 February 2010 By MoneyHighStreet Staff Leave a Comment
Energy suppliers in the main are setting their energy prices more competitively out of their host region as they seek to gain new business.
Despite this it’s estimated* that a third of domestic electricity customers remain faithful to their home supplier and therefore are potentially not getting the best energy deal possible.
Energy suppliers don’t have the monopoly over the supply in any one region which means that consumers can shop around for the best energy deal regardless of where they live. However, research from Confused.com shows that energy suppliers seem more interested to compete on price outside their host region than they are in retaining and rewarding loyalty in their old monopoly trading regions.
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 you really can save money either by switching energy supplier, opting for a more efficient payment method or changing to an online tariff.
nPower is particularly bad in that it charges customers in Yorkshire 12% more than their average price across other regions. Of all the energy providers the only one to buck this trend is EDF who don’t charge extra in their London region.
* the proportion of customers still with home supplier from the Department of Energy & Climate Changes Dec 2009 Quarterly Energy Prices report.