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
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.
“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)|
Source: Most recent full accounts for each company as found on Companies House or company websites
|Network Company||Profit Margin (%)|
|UK Power Networks||30.2|
|Western Power Distribution||32.7|
|Electricity North West||25.7|
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|
Data checked by the Big Deal, 13th October 2017.