Electricity prices are being pushed higher for some customers as former monopoly suppliers impose a ten per cent “loyalty tax”, a report by uSwitch.com finds today. Companies that formerly operated as regional electricity boards still hold 53 per cent monopolies in some regions and are able to imposed £32 levies on customers, according to the report. In some regions the ‘home’ supplier is £51, or 16 per cent, more expensive than competitors who have entered the market. “Tactical regional pricing is a tax on loyalty. Electricity suppliers are treating local longstanding customers like cash cows, using them to subsidise the more competitive prices they are offering to new customers in other regions,” said Ann Robinson, director of consumer policy at uSwitch.com. All 14 suppliers of electricity in the UK operate a regional pricing policy, charging different prices based on region to provide exactly the same service, and ten suppliers were found to be more expensive than every other supplier in their home region. Npower is the worst offender, charging customers an average of £54 more in its home regions than in other areas around the country. The average price for electricity from the company across the whole country is £344, but in areas where it was formerly the monopoly supplier, including Leeds, Newcastle and Birmingham, the average is £398. In London the incumbent supplier, EDF Energy, is £26 more expensive on average, based on a medium use electricity user (3,300kWh), paying by direct debit. “At the moment tactical regional pricing works against consumers and in favour of electricity suppliers because around half of households are still with their original local supplier,” continued Ms Robinson. “The tables are very easily turned though. With savings of around 16 per cent on offer consumers just need to take advantage of one of the many cheaper deals available from competitors.”

Related posts...

• June 22, 2010 -- UK Business Energy Prices: (3)
  A new survey carried out by the Economist Intelligence Unit has revealed that over 80% of British firms expect energy and fuel prices to rise sharply and almost 50% have great concern that the UK coul...
• February 21, 2010 -- Identifying a Half Hour Meter: (0)
  How to find out if you have a half hourly meter – So how do you know if you have a half hour meter?  It’s actually quite straight forward, and all you will need to find this out is a recent copy o...
• February 10, 2010 -- UK Business Gas Prices: (0)
  Business Gas Prices can be difficult to understand, as there are many different types of pricing structures available.  You could simply ring around and obtain gas prices direct from suppliers, but it...
• February 7, 2010 -- Oil Prices Back To $70 Range: (0)
  Oil prices plunged in a busy trading session on Friday, triggering big losses across the commodities markets, as investors went back to buying into the US dollar.  Crude oil prices did have a partial ...
• February 5, 2010 -- CRC Business Lights: (1)
  The era of the 'on-all-night' illuminated high street could end, the Environment Agency is predicting. The agency says new rules will force businesses to switch off lights and displays at night to mee...
• February 3, 2010 -- Bglobal Smart Meter Deal: (3)
  Bglobal Plc said it has signed a new agreement to supply and install smart meters for British Gas Business during 2010. The contract value is anticipated at more than £12 million. In addition, the com...

RSS feed for comments on this post. TrackBack URI

You must be logged in to post a comment.