Electricity prices higher for loyalty to local electricity suppliers

Households are paying up to 33% a year extra on electricity prices as a ‘loyalty tax’ for sticking with thier local electricity suppliers.

The research from uSwitch shows that electricity suppliers on average charge customers 6% more in their ‘home’ region than elsewhere.

In 50% of regions, the incumbent supplier is the most expensive. Sticking with a local supplier is simply more costing money.

uSwitch Consumer Policy Director, Ann Robinson, said ‘Consumers have to understand there is no reward for loyalty. The cheapest prices and the best deals are being offered time and time again to those who are prepared to change suplliers.’

There is severe competition amongst energy suppliers.

They all run a regional electricity pricing strategy and have tended to concentrate on ensuring they undercut in other suppliers’ regions.

As a result they have missed an opportunity in their own region and often end up charging more to their customers in this than elsewhere.

Currently British Gas are the cheapest electricity supplier in every region

Energy suppliers tend to target their best prices around dual fuel deals, coupled with an online managed plan (no paper bills) and payment by direct debit.

Even if you already have a deal with all these components it could still be worth making sure you compare electricity prices from a number of suppliers so you can see what their latest deals are and in particular what’s on offer in your post code area.