Top 10 Most Expensive Cities for Electricity Rates in the UK

A recent survey we undertook in February 2024 shows how much electricity and gas prices vary around the country.

See how much more you could be paying just because of where you live.

You may not realise it, but the prices for electricity and gas, either as a single fuel or under a dual fuel contract, vary greatly, depending on where you live in the UK. This rate variation has long been standard practice amongst energy providers. The difference between the most expensive area and the lowest cost for electricity is £83.90 per year. Gas prices are similar throughout the UK.

The research compared the energy bills for dual fuel tariffs based on what is considered an average annual electricity bill. According to the regular Ofgem, the average home uses 2,700 kWh of electricity and 11,500 kWh of gas each year. Although this won’t be correct for many customers, it’s an industry standard defined by the energy watchdog Ofgem.

Here are the top 10 cities around the UK based on the research undertaken. Is one of these yours? We’ve also added four other cities to complete all 14 electricity regions.

Data from Q1/ 2024 Energy Price Cap for electricity based on an annual usage of 2,700 kWh. The daily standing charge shows the rate as pence per calendar day. The unit price is pence per kWh used.

The difference between the most expensive city in the Mersey region and the lowest in the East Midlands region is £83.90 per year. This difference is mainly due to the higher daily standing charge of 62.21p per day. The London region has the lowest standing charge at 38.50p per day, with Yorkshire having the lowest unit rate of 27.79p per kWh.

There is a similar discrepancy for business customers, although suppliers such as Octopus Business Energy offer numerous options to mitigate these circumstances.

How Can You Reduce Your Costs?

If you live in one of the more expensive areas, your energy bills will always be higher than the usual averages and about £80 a year more than those of the cheapest region.

But, no matter where you live, you should always compare tariffs regularly to ensure you’re on the lowest tariff for your property.

The various comparison services require your postcode and usage statistics to perform a search of tariffs from all energy suppliers.

You can switch providers as often as you wish to get the latest and lowest rates (although some fixed-term contracts may have termination fees payable if you leave before the end of the agreement). There is no real need to be loyal to one company or another because, at the end of the day, all you need is the cheapest provider to pay the least amount.

Switching to Lower Prices Made Easy

No matter how often you switch these days, it’s very straightforward with your new supplier handling all the paperwork and switching process on your behalf.

All you need to do is choose the tariff you want to be on that offers the lowest rates and is suitable for your circumstances. For example, you may wish to pay by Direct Debit or manage your account online so you can enter accurate meter readings yourself. You might want to opt for one of the new renewable energy contracts that provide green electricity to your home.

As we say, there is no limit to the number of times you switch providers. With new deals always coming onto the market, you could reduce your costs even further with a regular market comparison. But watch out for any termination fees if you opt out of a contract earlier than the overall time that the discounts may apply to the prices you sign up for.

You can also enter your information into the price comparison sites each week to ensure you have the lowest rates for your property at any time. It only takes around 30 seconds to get a quote, so this may be something to undertake today.

Source data: Ofgem Energy Price Cap regional rates

Posted in: Dual fuel suppliers and prices