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Electricity cost variations across the country

Supreme_2
Supreme_2 Posts: 133 Forumite
Why are there so many variations in electricity cost across the country?

I now live in Cardiff and am looking at the price comparison sites. The cheapest electricity i can get for my usage (3,700kWh/year), with no standing charge (i might not be in the property too long, so dont want the added expense), is 14.5p/kWh with EDF. If i check the price for exactly the same EDF tariff in Herefordshire (where i am originally from), the cost is 12.5p/kWh! So that's over 15% more in Cardiff...

Why is this the case? It means that i am paying £44.50 per month, when i could be spending £38.50!

Comments

  • anniecave
    anniecave Posts: 2,476 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    two reasons...

    firstly cost of generating electricity varies from area to area. So it may be that due to any number of factors, it costs more to produce electricity in south wales than it does in herefordshire
    secondly the suppliers (after they have bought the electricty from the generating companies) have different pricing strategies for diferent areas. Maybe EDF are deliberately trying to gain new customers in the midlands area by keeping their prices low, but aren't trying to get customers in south wales.
    Indecision is the key to flexibility :)
  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    anniecave wrote: »
    two reasons...

    firstly cost of generating electricity varies from area to area. So it may be that due to any number of factors, it costs more to produce electricity in south wales than it does in herefordshire
    .

    It is not actually the cost of generating electricity - that is all obtained from the National Grid.

    The cost is down to the complexity and maintenance of the distribution network, sub stations, pylons, etc. For instance there will be few customers in some of the Scottish Highlands counties covering a huge area, compared with urban areas in other parts of UK.
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