In the UK, energy prices vary depending on the region. The same amount of energy is more expensive in some areas, and cheaper in others. There are several factors that determine that.
- Firstly, the price per unit of energy used depends on how many people live in the region. If a supplier does not have many customers that it can sell energy to, the prices are likely to be higher.
- Secondly, the price depends on how much the company buys from energy generators. If a company ends up buying too little, the prices will go up.
- Thirdly, local distribution networks impose charges on energy suppliers. These fees vary across the UK, and are reflected in energy prices.
In the UK, electricity is supplied through Distribution Network Operators (DNOs), and gas is supplied through Gas Distribution Networks (GDNs). As the networks have monopolies in certain regions, Ofgem, a government department for gas and electricity supplies, controls prices and regulates energy companies in the UK.
Those who live in North Scotland and London have to face the highest electricity prices. Those who live in the North East and North West, on the other hand, can enjoy the cheapest rates.
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