Why does Energy Cost Differently Dependent on the Region?


What’s in this guide?


Did you know that your regional energy may be more expensive?

Even though it’s the same energy, your supplier may have different costs which affect your prices.

This guide will tell you everything you need to know about regional energy costs, including what affects them and how you can save.

The three different factors

Three main factors go into the cost of your energy.

  1. How many customers an energy company has in your area
  2. How much energy your supplier buys from generators in your area
  3. The amount your local distributor charges your supplier

These different elements affect the cost of your energy a lot, take a look at the table below to find out which areas are the most and least expensive.





North Wales 11.73 London 3.2
North Scotland 11.46 West Midlands 3.19
South Wales 11.13 North West England 3.19
North West England 11.05 South West England 3.16
South West England 11.04 North East England 3.15
North East England 11.01 South Wales 3.15
Yorkshire 10.64 North Wales 3.15
West Midlands 10.38 Southern England 3.14
Southern England 10.17 Yorkshire 3.14
South Scotland 10.15 South East England 3.11
East Midlands 10.14 Eastern England 3.07
South East England 10.05 South Scotland 3.07
London 9.93 North Scotland 3.07
Eastern England 9.93 East Midlands 3.05

Which regional energy is the most expensive?

Depending on your region, an energy source is either more or less expensive. For instance, if you live in North Wales, this is where your electricity will be the most costly.

Your gas will be the most expensive, however, if you live in London.

Which regional energy is the least expensive?

The least expensive regions to live for both electricity and gas is in the East of England, with gas being specifically the cheapest is in the East Midlands.

How does it work?

Wholesale costs

An energy supplier will purchase a certain amount of energy that will cover a set period for a specific number of customers.

This is why it’s called wholesale costs.

Your supplier can either offer you fixed prices for a year or possibly even two years, as they have already bought the energy at wholesale costs.

Or, a variable tariff which means your energy costs fluctuate with the open market.

This is typically more expensive as it means your tariff price could be increased at any time.

Network costs

Transmission and distribution companies distribute the energy from its source to your home, which your energy supplier is then charged for using as these are required to transfer energy from the source to your house.

Operational costs

Operational costs include the rent for buildings, salaries, customer service and things like that which go into the running of your energy company’s business.

Environmental and social costs

Energy costs are also affected by social and environmental levies.

These government schemes lower carbon emissions and help the environment.

So, for example, this might include:

  • The ECO scheme
  • Warm home discount
  • New smart meters
  • Feed-in tariff

How can I save money?

Unfortunately, there’s not too much you can do about your regional energy costs unless you move home, you can save money on your energy bills by switching supplier.

According to some reports, customers that switch away from one of the big six energy suppliers to a smaller independent company could be saving up to £400 a year on their energy bills!

But you should ensure that you compare suppliers first before you make any decisions about your energy supplier.

Why compare?

So why compare electricity and gas prices instead of switching to the first supplier you see?

Only because you need to ensure that you are getting the absolute best deal for you and your home.

Although you can use the quick and simple comparison tool at the top of the page, you should also have a look at the energy supplier guides.

They will tell you everything you need to know about each energy supplier, including the tariffs they offer and what their customers are saying about them.

How do I compare?

First, consider why do you want to switch? Is it for a better price or better customer service for example? This will help you to decide which is more important.

You will need this information:

  • Your location
  • Annual consumption or spend
  • The size of your home
  • Email
  • Phone number

How can I keep my energy bills low?

If you’re looking into which regions are the most expensive, chances are there isn’t too much you can do about having more expensive energy than in other places in the UK.

But, you can do things like access specific grants or initiatives available if you fall into specific categories.


Are you interested in making savings on your energy costs?

Did you know that you could be saving £500 annually on your energy bills every year?

Take a look at the EnergySeek guides to find out more about your energy, or see reviews of the top 7 energy switching sites to compare gas & electricity.