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Why the huge difference in Electricity Prices from one region to another ?

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Leodogger
Leodogger Posts: 1,328 Forumite
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edited 7 February 2023 at 1:53PM in Energy
I was discussing our energy bill with my sister and she happened to mention that her electricity per kWh was just 34p per kWh.   I checked my bill and ours is 63.96p per kWh :o   We live in Walsall in the West Midlands and she lives in Trentham in Staffordshire.   Why such a huge discrepancy?   I thought all energy suppliers were charging around the same so everyone was advised not to bother trying to switch?
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  • dunstonh
    dunstonh Posts: 119,624 Forumite
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    edited 7 February 2023 at 1:41PM
    I was discussing our energy bill with my sister and she happened to mention that her electricity per kWh was just 34p per kWh.   I checked my bill and ours is 63.96p per kWh o
    Is some of that down to economy 7 (or other multi-rate vs single rate?
    Nobody should be on 63.96p for single rate, regardless of region.
    You can get closer to that with multi-rate tarrifs but even with someone like EDF who have single digit off-peak rates (e.g. 7p for Eastern) would still be 54.47p for peak.

    Is it perhaps your supplier is showing the price before government support?

    We live in Walsall in the West Midlands and she lives in Trentham in Staffordshire. 
    Midlands on single rate is 33.81p

    I thought all energy suppliers were charging around the same so everyone was advised not to bother trying to switch?
    Single rate, there is no point as its all the same due to government support.  Multi-rate tariffs are still viable for switching though and there can be big differences.  However, even with those, the median rate is the same with all of them.

    here is an example of the variances from EDF (their after Government support pricing version)
    https://www.edfenergy.com/sites/default/files/government_energy_price_guarantee_prices._safeguard_assist_-_capped_and_deemed._credit_meters.pdf

    And here is what it would be if there wasn't government support:
    https://www.edfenergy.com/sites/default/files/ofgem_default_tariff_cap_prices._standard_variable_deemed_and_welcome_-_credit.pdf





    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Leodogger
    Leodogger Posts: 1,328 Forumite
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    edited 7 February 2023 at 1:55PM
    dunstonh said:
    I was discussing our energy bill with my sister and she happened to mention that her electricity per kWh was just 34p per kWh.   I checked my bill and ours is 63.96p per kWh o
    Is some of that down to economy 7 (or other multi-rate vs single rate?
    Nobody should be on 63.96p for single rate, regardless of region.
    You can get closer to that with multi-rate tarrifs but even with someone like EDF who have single digit off-peak rates (e.g. 7p for Eastern) would still be 54.47p for peak.

    Is it perhaps your supplier is showing the price before government support?

    We live in Walsall in the West Midlands and she lives in Trentham in Staffordshire. 
    Midlands on single rate is 33.81p

    I thought all energy suppliers were charging around the same so everyone was advised not to bother trying to switch?
    Single rate, there is no point as its all the same due to government support.  Multi-rate tariffs are still viable for switching though and there can be big differences.  However, even with those, the median rate is the same with all of them.

    here is an example of the variances from EDF (their after Government support pricing version)
    https://www.edfenergy.com/sites/default/files/government_energy_price_guarantee_prices._safeguard_assist_-_capped_and_deemed._credit_meters.pdf

    And here is what it would be if there wasn't government support:
    https://www.edfenergy.com/sites/default/files/ofgem_default_tariff_cap_prices._standard_variable_deemed_and_welcome_-_credit.pdf





    The price I quoted was before the Government hand out which reduces it to just over 32p per kWh.   I am now wondering if my sister quoted me her rate AFTER the Government subsidy came off, must check and will let you know.   The reason I was looking into the lecky cost was that I was reading that space heaters are economical to run to heat a room and thought about getting one but they seem to cost anything from 35p to 50p per hour to run 😯  My sister though swears by an oil filled radiator which she runs all day on 650w per hr but which I thought would prove expensive to run.  Any thoughts on those?
  • EssexHebridean
    EssexHebridean Posts: 24,421 Forumite
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    edited 7 February 2023 at 2:09PM
    Any form of "standard" electric heating is 100% efficient - but will still cost in the region of 3 times as much to run as gas central heating will. So your choice of a space heater will produce the same amount of heat for £1 worth in energy used as your sister's oil filled rad. 
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  • Leodogger
    Leodogger Posts: 1,328 Forumite
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    Any form of "standard" electric heating is 100% efficient - but will still cost in the region of 3 times as much to run as gas central heating will. So your choice of a space heater will produce the same amount of heat for £1 worth in energy used as your sister's oil filled rad. 
    So would I be better off running my gas central heating radiator in my living room only to keep the cost down rather than buying a space heater?   I always thought gas central heating was expensive to run.
  • Leodogger said:
    Any form of "standard" electric heating is 100% efficient - but will still cost in the region of 3 times as much to run as gas central heating will. So your choice of a space heater will produce the same amount of heat for £1 worth in energy used as your sister's oil filled rad. 
    So would I be better off running my gas central heating radiator in my living room only to keep the cost down rather than buying a space heater?   I always thought gas central heating was expensive to run.
    That is only a question that you can answer. Electricity is 3 times more expensive than gas but it is 100% efficient.

    You cannot just heat a single room with gas central heating without there being some downsides.  Hot water will still circulate around the home and all pipes act as radiators. The water temperature returning to the boiler will also be near flow temperature so boiler efficiency will be reduced. Moreover, the boiler will be massively over-sized for one room which will result in boiler cycling and increased boiler wear and tear.
  • macman
    macman Posts: 53,129 Forumite
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    Leodogger said:
    Any form of "standard" electric heating is 100% efficient - but will still cost in the region of 3 times as much to run as gas central heating will. So your choice of a space heater will produce the same amount of heat for £1 worth in energy used as your sister's oil filled rad. 
    So would I be better off running my gas central heating radiator in my living room only to keep the cost down rather than buying a space heater?   I always thought gas central heating was expensive to run.
    Electricity: 34p per kWh.Gas, 10p per kWh...
    No free lunch, and no free laptop ;)
  • Leodogger
    Leodogger Posts: 1,328 Forumite
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    edited 25 October 2023 at 9:41PM
    Leodogger said:
    Any form of "standard" electric heating is 100% efficient - but will still cost in the region of 3 times as much to run as gas central heating will. So your choice of a space heater will produce the same amount of heat for £1 worth in energy used as your sister's oil filled rad. 
    So would I be better off running my gas central heating radiator in my living room only to keep the cost down rather than buying a space heater?   I always thought gas central heating was expensive to run.
    That is only a question that you can answer. Electricity is 3 times more expensive than gas but it is 100% efficient.

    You cannot just heat a single room with gas central heating without there being some downsides.  Hot water will still circulate around the home and all pipes act as radiators. The water temperature returning to the boiler will also be near flow temperature so boiler efficiency will be reduced. Moreover, the boiler will be massively over-sized for one room which will result in boiler cycling and increased boiler wear and tear.
    We are like most people and can't afford to use our central heating all over our bungalow but I am so sick of huddling inside a throw wearing 2 pairs of socks, slipper boots with ear muffs and a scarf to keep warm ! 😁
  • Swipe
    Swipe Posts: 5,606 Forumite
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    Leodogger said:
    I was discussing our energy bill with my sister and she happened to mention that her electricity per kWh was just 34p per kWh.   I checked my bill and ours is 63.96p per kWh :o   We live in Walsall in the West Midlands and she lives in Trentham in Staffordshire.   Why such a huge discrepancy?   I thought all energy suppliers were charging around the same so everyone was advised not to bother trying to switch?
    Wallsall and Trentham are in the same region
  • EssexHebridean
    EssexHebridean Posts: 24,421 Forumite
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    edited 25 October 2023 at 9:41PM
    Leodogger said:
    Leodogger said:
    Any form of "standard" electric heating is 100% efficient - but will still cost in the region of 3 times as much to run as gas central heating will. So your choice of a space heater will produce the same amount of heat for £1 worth in energy used as your sister's oil filled rad. 
    So would I be better off running my gas central heating radiator in my living room only to keep the cost down rather than buying a space heater?   I always thought gas central heating was expensive to run.
    That is only a question that you can answer. Electricity is 3 times more expensive than gas but it is 100% efficient.

    You cannot just heat a single room with gas central heating without there being some downsides.  Hot water will still circulate around the home and all pipes act as radiators. The water temperature returning to the boiler will also be near flow temperature so boiler efficiency will be reduced. Moreover, the boiler will be massively over-sized for one room which will result in boiler cycling and increased boiler wear and tear.
    We are like most people and can't afford to use our central heating all over our bungalow but I am so sick of huddling inside a throw wearing 2 pairs of socks, slipper boots with ear muffs and a scarf to keep warm ! 😁
    Somebody recently did some experimentation around this on here IIRC and discovered that actually their perception of what they *thought* it would cost, and what it actually cost, were rather different.  As I recall, their original perception was based on the cost of running the boiler for 1 hour - when of course it will be working at its hardest to bring the system up to temperature. A more actual picture of running costs was gained when they allowed it to run for longer, and checked what the use evened out to after those first few hours. 

    It would also be worth you having a browse around both here and the main MSE site for tips on reducing heating costs - from closing off heating in some (unused, usually) rooms to adjusting boiler flow temperature and changing the settings to be more economical. There is lots of excellent advice here! 
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    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
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  • diystarter7
    diystarter7 Posts: 5,202 Forumite
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    Leodogger said:
    I was discussing our energy bill with my sister and she happened to mention that her electricity per kWh was just 34p per kWh.   I checked my bill and ours is 63.96p per kWh :o   We live in Walsall in the West Midlands and she lives in Trentham in Staffordshire.   Why such a huge discrepancy?   I thought all energy suppliers were charging around the same so everyone was advised not to bother trying to switch?
    Hi OP

    It's called on the whole, making bigger profits

    However, that is a vast difference and I'm surprised no one else has picked it up
    Could you have confused the standing charges ? Apols if I have got it wrong.

    I am just as confused as you are and a caller to a phone in radio show asked 'why are those areas that get most of their power from wind turbine/solar panels etc still charging as much as the rest - no one had a valid answer

    You may recall diesel prices have been called ito question for a long time and referred to as 'profiteering.'

    IMO, it is profiteering if that is the price difference..

    Walsall is west midland by Brum right or part of Brum? Trentham, is that were those fancy gardens etc used to be and is it all covered under West Midlands regions?

    Thanks





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