Knowing Who to Switch To When Changing Supplier

nenya

A few weeks ago, EDF Energy was in the news for being the lowest priced Gas and Electrcity supplier - which is great for them, because it means everyone kept phoning up and changing to them. However, there is a little catch when changing supplier.

Up until about 1998 or 1999, everyone was stuck with the same electrcity supplier, and that depended on what area you lived in, so in Brighton we had SeeBoard, Wiltshire we had Southern etc etc. However, when the market was opened up be meant that everyone could trade anywhere. This basically means that Scottish Power could supply a house in SeeBoards area for less, because SeeBoard could not uncut it's own prices in it's own area. Much in the way British Gas, who was the sole supplier of gas could not under cut it's own prices when the market opened, hence they are the most expensive Gas Supplier in the UK.

Now going back to my EDF example. EDF now owns SeeBoard, London Energy and SWEB. However, if you live in an EDF area, you will pay more for your electrcity than if you used another company like Scottish Power. However, if you lived in a Southern area (such as Wiltshire) then EDF would be cheaper.

Prices actually vary from area to area, with the companies core areas being the most expensive to supply because they can never ever undercut there own prices.

So next time you read in the paper that Scottish Power are the cheapest suppliers, be sure that you don't live in Scotland, because I can assure they will not be the cheapest for you.

stewie_griffin

Thats a very interesting point but unforunately its completely wrong. I live in the East Midlands and the host Supplier is Powergen, yet looking on uswitch the most expensive company for me would be Scottish Power.

Prices do vary from area to area however the cost depends on how expensive it is to distribute to those areas ie prices in North Wales and North Scotland are more expensive than say the Midlands.

nenya

Actually you host supplier is someone different - although I will be first to say that Powergen is part of the eon group who are the parent group of the company that distruibes power to the east midlands.

Now i was never saying the Scottish Power were the cheapest - they were my example. But as a general rule, host suppliers are not the cheapest. It is always cheaper to go else were. But you have to be willing to shop around to find the cheapest supplier.

stewie_griffin

Speaking as someone who works in the industry, Powergen are definately the host supplier in the East Midlands. They aren't however the distributor in the East Midlands (although as you point out both the host supplier and distributor in the East Midland are both owned by eon).

I understand that you weren't saying SP are the cheapest, my point was that if your theory is correct then SP should be cheaper than Powergen in the East Midlands and in my case they certainly aren't.

I do 100% agree with your last statement though.