Energy price cap: Merseyside residents pay more for energy than the rest of Britain

Unknown to many, the energy price cap varies according to where you live. It is a series of regional caps set at differing levels across the country.

Currently, the highest price paid in Britain is by people in North Wales and Mersey, at £2,015 a year for a typical household.

It means a household in Liverpool pays £84 more for the same amount of energy than one in Newcastle.

The widely published energy price cap figure for the ‘typical’ consumer is an average of the regional rates - it currently stands at £1,971 a year.

The price cap will rise by 80% in October and when that happens, households in Merseyside will pay a full £121 a year more than those in the North East.

Why are there differing price caps?

The price cap is the maximum amount energy companies can charge per unit of energy. It is set by regulator Ofgem, which takes into account the cost of transporting gas and electricity to people’s homes.

Those costs are more expensive in some parts of Britain than others, so Ofgem sets regional caps for different areas.

Many people are already paying the maximum amount, due to the cost of living crisis, and the cap is set to increase by 80% from October 1.

Merseyside’s price cap

Prior to the October increase, the price cap stood at £1,970.85, with Merseyside households paying £34.10 more than the national average.

The price cap for the Northern region was £1,930.95, which is £84 less than North Wales and Mersey.

From October 1, the energy price cap for Britain increases to £3,549 and North Wales and Mersey will see a price cap of £3615.15 - a full £121 a year more than those in the North East.

Liverpool and Knowsley are ranked third and second retrospectively for the highest levels of deprivation across 317 authorities in England, however, they face the highest energy bills in the country.

Price cap by region

NationalWorld have compiled the data of the current price caps for each region of Great Britain for a typical consumer, which is based on someone with typical energy usage on a dual fuel tariff paying by Direct Debit.

• North West £1,948
• Northern £1,931
• Yorkshire £1,944
• Northern Scotland £1,972
• Southern £1,980
• Southern Scotland £1,968
• N Wales and Mersey £2,015
• London £1,978
• South East £1,985
• Eastern £1,967
• East Midlands £1,938
• Midlands £1,968
• Southern Western £2,009
• South Wales £1,989
• GB average £1,971

And here is what the prices will be from October 1, unless any changes are made to the energy price cap in the meantime.

• North West: £3,521
• Northern: £3,494
• Yorkshire: £3,521
• Northern Scotland: £3,531
• Southern: £3,563
• Southern Scotland: £3,550
• N Wales and Mersey: £3,615
• London: £3,573
• South East: £3,568
• Eastern: £3,549
• East Midlands: £3,506
• Midlands: £3,550
• Southern Western: £3,578
• South Wales: £3,565
• GB average: £3,549

Why is the cost of electricity and gas different across the country?

Some areas of Britain are more expensive to get electricity to, while others are more expensive to get gas to.

Transmission and distribution are the two stages of getting power to people’s homes. For example, with electricity, transmission involves getting power from the source to local sub-stations, while distribution then feeds this power into individual homes.

According to Ofgem, electricity distribution charges are higher in North Scotland, Merseyside and North Wales and the South-West of England.