Unit pricing by area????

Pierre_19

Hi all .....

I've just been looking at Co-op Energy prices for electric.

The lowest unit price is for the West Midlands at 13.97p per unit.

Where I live in Highland Scotland, it is a whopping : 17.13p p.u.
That's an increase of 22.6% ......

Why is there such a large dispcreancy .....

.... and it is so un-fair .....

WHY ....

Cheers

Pete

matelodave

They would say its because of the cost for distribution - your only option is to find someone else or move to the West Midlands

Pierre_19

matelodave wrote: »

They would say its because of the cost for distribution - your only option is to find someone else or move to the West Midlands

Hi Dave .... it would be nice to think that it would be easy to up-sticks and move ..... NOT ....

.... and really, the cost of ditribution .... oh come on .....

It's a rip-off ..... nothing short.

Cheers

Pete

ValHaller

Pierre_19 wrote: »

.... and it is so un-fair .....

In the highlands there is a lot more and longer network to supply a property, so more capital is needed to provide supply per property. Plus the maintenace costs for that network wil be proportionately higher.

And being further away from centres of generation, you are looking at say 1.1kWh being put into the network for you to receive 1kWh rather than just requiring 1.05kWh to be put in to give you 1kWh in the West Midlands.

matelodave

I wasn't siding with them, I was just telling you what they would say.


I didn't really mean that you should up-sticks and move (but it is an option)

Cardew

Presumably you are with the 'legacy' provider for the highlands?

The price differential does not have to be so high. For instance Eon fixed for the Highland area is 13.104p/kWh and you get a 6% discount for direct debit so 12.32p and other discounts:

E.ON's Monthly Direct Debit customers will receive a direct debit statement
once every six months, unless a change to their direct debit amount is required.
Fixed 1 Year v5 prices are fixed for 12 months beginning on the day E.ON starts
supplying your energy. Your prices will not change from the contracted price
within the term of your deal. There is a cancellation fee of £5 if you switch
away before the end of the guarantee period (This fee is waived if you are
switching over to another E.ON tariff). The estimated savings figure on the
results table assumes tariff rates and discounts remain the same for a year.
However, after the contract period E.ON will either transfer you to the closest
equivalent offer available or their EnergyPlan tariff, either of which may be
more expensive than Fixed 1 Year v5. Customers on this tariff can receive an
extra discount of £5.25 a year (not included in the savings figure) as a reward
for managing their account online. Customers are also eligible for a loyalty
discount of £10.50 for staying with E.ON for 1 year, £15.75 for 2 years and £21
for 3 or more years (not included in the savings figure).

macman

For exactly the same reasons that food and petrol costs more in the Highlands? Electricity is no different-and the very low population density means far higher fixed costs per customer.
The only service that you get subsidised in the Highlands is the postal service, which presumably makes a huge loss there.

patientperson

Pierre_19 wrote: »

Hi all .....
I've just been looking at Co-op Energy prices for electric.
The lowest unit price is for the West Midlands at 13.97p per unit.
Where I live in Highland Scotland, it is a whopping : 17.13p p.u.
That's an increase of 22.6% ......
Why is there such a large dispcreancy .....
.... and it is so un-fair .....
WHY ....
Cheers
Pete

Pierre .. I agree with some of your complaint.
I was also looking to Co-oP Energy electricity price.

Energy Prices (incl VAT) for Domestic Customers (Fixed Price till March 2017) by region and price (pence per KWh).

East England 14.21 / East Midlands 14.49 / London 14.62 / North Wales,Merseyside and Cheshire 16.76 / West Midlands 13.97 / North East England 15.03 / North West England 15.44 / North Scotland 17.13 / South Scotland 14.43 / South East England 15.08 / Southern England 15.17 / South Wales 16.26 / South West England 16.62 / Yorkshire 14.49.

Point also to consider .. if the green levies are reduced then I am advised that the fixed tariff will not be reduced correspondingly.

From the above we can see:
3 most expensive: North Scotland (17.13) North Wales (16.76) South West England (16.62).
3 cheapest: West Midlands (13.97) East England (14.21) South Scotland (14.43).

It is as Pete described .. most expensive in North Scotland followed closely by the region embracing North Wales, Merseyside and Cheshire.

Given that North Wales generates electricity and the mentioned region of North Wales, Merseyside and Cheshire is only just over 100 miles from the cheapest at West Midlands it is a mystery how come this region is the second most expensive.

A nice little earner it would appear.

ValHaller

patientperson wrote: »

.... Given that North Wales generates electricity and the mentioned region of North Wales, Merseyside and Cheshire is only just over 100 miles from the cheapest at West Midlands it is a mystery how come this region is the second most expensive.

Lower population density means that higher capital investment is required in infrastructure to supply the area. Plus that infrastructure is comprised to a far greater proportion of overhead lines with higher maintenance costs.

hebridean

As Cardew said 12.32p is about the cheapest we can get per Kw unit up here from eon in the frozen north. i tried a multitude of others but they don't cover the North of Scotland.
I wonder if we will sell to the South of England when we cover everyhill top with turbines?

patientperson

ValHaller wrote: »

Lower population density means that higher capital investment is required in infrastructure to supply the area. Plus that infrastructure is comprised to a far greater proportion of overhead lines with higher maintenance costs.

Yes, I can see the logic to this suggestion but the region in question includes Merseyside and whole of Cheshire so we are no longer talking lower population density. I am sure that the Lake District would also class as low population density but the North West has a much lower unit price.