Grahame Morris MP

Member of Parliament for Easington

MP calls for an end to the energy postcode lottery which sees household paying up to £139 more for their energy bills based on where they live

December 6, 2017 Press Releases 0

Energy network companies that cause this unfairness made £7.5 billion in profits last year, with margins of up to 39%

 

Today Grahame Morris MP has called for an end the energy postcode lottery and cut energy network costs for people in the Easington constituency.

 

New research published by consumer collective The Big Deal found some households paying as much as £139 more than other households despite being with the same energy company, on the same deal and using the same amount of gas and electricity. This occurs while the companies responsible for the difference make £7.5 billion in profits.

 

The report proposes ending the postcode lottery and reducing every household’s network costs down to the lowest possible level. This will see bill cuts for millions of consumers. The cost of this reduction is £643 million, which is just a tenth of the network companies profits. These companies can afford to pay for this change, while taxpayers see only cuts to their bills.

 

Grahame said:

“Energy bills are a major concern for constituents in Easington, that’s why I am pleased to support The Big Deal’s campaign to end the energy postcode lottery. No one should pay more for their energy based simply on where in the country they live, instead the network companies should sacrifice just a tenth of their profits to cut bills for all homes.”

 

The network companies make vast revenues and profits

Type of company Revenue (£bn) Operating Profit (£bn)
Electricity Transmission £5.11 £1.81
Electricity Distribution £6.30 £3.46
Gas Transmission £2.27 £0.86
Gas Distribution £2.94 £1.32
Total £16.6 £7.5

Source: Most recent full accounts for each company as found on Companies House or company websites

 

Network Company Profit Margin (%)
SSE 28.9
Scottish Power 38.9
UK Power Networks 30.2
Western Power Distribution 32.7
Northern Powergrid 35
Electricity North West 25.7
Average 32

Source: ECIU—Monopoly Money, How the UK’s electricity distribution network operators are posting big profits—September 2017

 

The difference between prices of the same tariff can be nearly £140 just based on where someone lives

British Gas Npower EDF SSE Scottish Power Eon
Most expensive region South West – £1,560 Southern – £1,661 South West – £1,664 South West – £1,630 Merseyside and North Wales – £1,625 South West – £1,639
Cheapest Region South Scotland – £1,481 South Scotland – £1,613 South Scotland – £1,525 Yorkshire – £1,509 South Scotland – £1,532 Yorkshire – £1,549
Difference £79 £48 £139 £121 £93 £90

Data checked by the Big Deal, 13th October 2017.