Families are paying up to £139 more in energy bills by living on wrong side of street based on their energy network region
The most outrageous differences in the postcode lottery are for families who live right on the borders of a region
FAMILIES can pay up to £139 a year more in energy bills just by living on the wrong side of the street.
Costs vary hugely depending on which energy network region a house is in, even though the service and the gas and electricity are exactly the same.
And the postcode lottery is at its most ridiculous for families who live right on one of the borders.
Ken and Janet Baker are a stark example. They pay £120 more in electricity than they would on the other side of their road in South Norwood, South London.
Their electricity meter was registered as being in Croydon so their bill was higher than neighbours listed as being in London.
Retired architectural designer Ken, 75, said the system was “entirely wrong”.
He said: “We are all part of Britain. We should all be paying the same wherever we live.”
And Ed Molyneux, head of research at consumer collective The Big Deal, said: “The case of the Bakers is ridiculous. It shows how farcical the network regions are.”
A key reason bills are higher in the region the Bakers’ home falls into is linked to the companies who own the wires and pipes getting electricity and gas to homes.
They charge different prices for different areas and bill the energy firms, who pass it on to customers.
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The former electronics engineer, of Chessington, Surrey, said: “Now I’m retired, I’m looking at everything we pay.
";The big power firms have been making a lot of money out of people for a long time.”
We revealed on Monday the group of little-known network firms make a combined £7.5billion a year profit.
Mr Molyneux added: “It would take just one tenth of their profits to end the postcode lottery so all pay a fair price.”
The Sun and The Big Deal, which publishes a report on the postcode lottery, want action from regulator Ofgem and the Government to reduce every bill to the cost of the lowest region.
The Energy Networks Association said: “Our prices are agreed by Ofgem.”
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And Ofgem said: “Network companies face different costs for serving customers in GB regions.
"Cost-reflective charges are a reasonable way to allocate these costs between customers.
"Ultimately, it would be for Government to decide if changes should be made to existing arrangements.”