Charged by your postcode
The size of your gas and electricity bill isn’t just about how much you use, says Paul Lewis.

Electricity and gas prices increased on 1 October. But you may not realise that the price you pay depends on where you live. Ofgem, the regulator, uses a standard way to work out the typical household energy bill: it says that, from October, the typical bill in England, Scotland and Wales will be £1,755 per year, a figure that was widely reported. But the detailed regional figures it publishes show that the typical bill varies from £1,698 a year in the East Midlands to £1,854 in North Wales and Merseyside. These variations are not because people use different amounts of electricity or gas, but simply because Britain is divided into 14 energy regions and each has its own price cap for a unit of electricity and gas, and for the standing charges.
Customers in North Wales and Merseyside pay 69.95p per day standing charge just to be connected to the electricity network. That is £255 a year before they have turned on a light or boiled a kettle. In the cheapest region, Southern England, the standing charge is £163 a year. And when customers do make a cup of tea, the cost of doing that also depends on where they live. A kWh of electricity – boiling a typical kettle for a total of 20 minutes during the day – will cost a Liverpudlian £5.82 a week which is 50p more than someone from Yorkshire will pay. Overall, a typical annual electricity bill in North Wales will be £1,004 but just £860 in London for using the same amount of energy.
Similar but smaller differences apply to regional prices of gas. Annual standing charges range from £124 in Southern England to £126 in London, and the cost of a single kWh unit from 6.2p in East Midlands to 6.58p in Southwest England.
There is little you can do about these differences (except move home!). Fixing your tariff might be cheaper: prices are expected to fall very slightly in January before rising later in 2026.
The figures are Ofgem capped prices in Britain for customers on direct debit. Quarterly payers pay more. Customers on fixed tariffs will pay different amounts. In Northern Ireland, the Utility Regulator controls prices and electricity is cheaper though gas prices are higher.
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