Gary Parsons is a UK based writer with experience in the utilities industry.
One of the growing phrases being used by the average consumer is that of the ‘postcode lottery’ but who would have thought that this phrase would be used when talking about gas and electricity prices. When deciding on buying a house, the last thing you think about is ‘How much is my gas and electricity going to cost in this area?’ but unfortunately it’s a question we may have to start to ask ourselves and the eager estate agents.
A study by independent consumer advice service Which? has found that living in East Anglia should be high up on your list when looking at moving or buying your first home.
Their studies have shown that a medium sized family house in East Anglia on a dual tariff (gas and electricity combined) would pay £895 to Scottish Power if on their standard pricing plan; compared to if they set up home in South Wales where their costs would increase by around £78.
It’d be wrong to simply put this down to the area where you live though. Where as the likes of car and home insurance companies choose to quote based on the risks attached to the areas they live in, quotes from utility providers are very different.
Before the deregulation of utilities within the UK, energy companies had a large dominance in certain regions. It was then decided that the market should be opened up to allow more competitiveness and help reduce prices for consumers. Since this happened, companies from outside the originally dominated areas have become to be quite successful, offering cheap gas and electricity prices and have ultimately become the winners.
The previously dominant suppliers have often been proved to be the most expensive amongst suppliers and have had to work on their quality of services to compensate this.
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