Tarriff differences in different areas

Out of curiosity I looked at the tarriff for where I now live in Yorkshire and where I used to live in London. Then I also looked at a few other areas in the UK. While the standing costs are the same there is something like a 10% difference in the per kwh charges. The differences for gas and electric are also not the same for each area. I just wondered why this is as neither the gas or electric I am using is at all likely to be supplied by Bulb it just comes from the pooled grid. I am not complaining Yorkshire is less expensive than London, Lands End or John O’Groats . I wonder when the cheapest and most expensive places are ?


@Anthraquinone, the reason why customer rates are different in different parts of the country is simply that the rates are different around the country.

Current Bulb prices for new customers/after April price rise (inc. 5% VAT):

@Anthraquinone fantastic question.

Most of the difference comes from differences in distribution and transmission costs between areas. The different regions’ distribution and transmission are managed by different companies (not the government, interestingly – we’re talking about private companies, albeit highly regulated ones whose gross profit margins are capped by regulatory regimes). They charge us different fees.

And the different fees aren’t necessarily unreasonable, I should probably add – it makes sense that distribution costs different amounts to different parts of the country.

  • Other things being equal, higher population density should result in lower costs because there are more homes amortising the cost of distribution.
  • Other things being equal, greater distance from the electricity’s generation should result in higher costs.