Business Energy Prices By Region

Wholesale costs are the single largest element of your gas and electricity price but did you know that that cost is driven by your suppliers’ commercial deals for the energy they supply rather than anything unique to your region?

Why then do prices differ by region if the ‘cost’ of the energy is the same. The answer is because of the distribution of the energy from its source (the power plant or gas production facility) to its destination. In essence the further it has to travel the more it will cost.

Also some regions suffer more losses (energy escaping from the wires and pipes) than others as older equipment fares less well than new. Unfortunately if you are based in a region with poor losses then again your price will be proportionately higher.

Finally some regions are subsidised such as Northern Scotland by others (England, Wales and South Scotland) which adds to bills further south whilst keeping costs down in the north of Scotland, this is because of the additional cost of transporting energy into the wilds, highlands and islands of remote Scotland.

Another major impact on the cost of your energy is when you use it, that is why business energy deals are bespoke to each business (unlike in the domestic market when behaviour is both uniform and predictable). Because of this bespoke nature it is difficult to compare regions like for like unless you have a standard set of assumptions driving the comparison.

That is therefore what we have done. Taking a standard customer assumption across the regions of the UK we can create a genuine regional price comparison and tell you the absolute maximum price you should be paying.