Energy price cap means firms could charge you up to £62 more than others based on where you live

HOUSEHOLDS could be charged up to £62 more for their gas and electricity depending on where they live in the country under a new energy price cap.

Nationally, suppliers won't be able to charge a typical dual fuel customer more than £1,136 a year for their energy bills when a cap on costs takes force on January 1, 2019.

But while the amount you pay for energy has always varied by region, has found that this postcode lottery is set to widen when the cap takes force.

Currently, households in the East Midlands pay the least for a typical big six tariff at an average of £1,196 a year.

In comparison, those in the South West pay the most at £1,245 a year - a £42 annual price difference.

But when the price cap takes force, it will be lowest in Yorkshire at £1,111 and highest in the South West at £1,173 - a £62 annual price difference.

MoneySavingExpert.com deputy editor Guy Anker said: "The regional variations highlight what is a postcode lottery whereby some are harshly penalised simply for living in the ‘wrong area’.

"It’s vital anyone on a standard tariff urgently checks if they can get a better deal before the bitter cold hits, and these figures shine an even brighter light on the huge sums many waste by sticking with expensive tariffs.

"A price cap may be coming, but while it makes standard tariffs fairer, it doesn’t make them good. Millions could still save £100s per year by switching."

Ofgem says prices vary by region because of the different costs of transporting gas and electricity around the country.

A spokesperson for Ofgem said: "Ofgem's methodology to set the level of the default tariff price cap is designed to reflect the underlying costs of supplying electricity and gas.

"The level of the cap varies by region, mainly because of regional variations of network charges which reflect the cost of transporting energy for each region.

"Thanks to the price cap, customers on default tariffs will save around £76 per year based on a national average when it is introduced on January 1.

"The price cap saving will vary by region because some suppliers are currently setting different prices in different regions in a way that doesn't reflect their costs based on our methodology for the price cap.

"However all customers on default tariffs will still make significant savings on average regardless of where they live."

With the cold weather creeping up on us, here's how much it costs to get frozen pipes unfrozen and which emergency plumbers can offer you the cheapest rates.

Plus, here's how often you need to get your boiler serviced and who to call when there’s a problem.

In other energy news, OneSelect has become to seventh household supplier to go bust this year leaving 36,000 customers without an energy supplier.

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