You are here: Home - Household Bills - News -

Electricity market currently charging higher regional prices

Written by:
12/04/2007

The UK market for electricity is not “properly competitive”, according to research compiled by experts at Warwick University.

Michael Waterson, professor of economics, said that customers are still being charged a higher price for their electricity by companies that once had a regional monopoly in the areas they serve.

These “incumbent” firms were found to charge up to 10% more than the new companies that try to sign customers up with the promise of lower tariffs, although there are discrepancies on the tariffs offered.

“The surprising thing was the big range of prices among the entrants to the market,” said Waterson. “The highest could be 30% more than the cheapest – and might even be more than the incumbent.”

Many households have switched energy suppliers over the years, encouraged by a raft of players from the Government to the energy regulator to the ever-increasing number of online firms which advise on switching.

But many households have not switched and are still paying over the odds. According to Waterson, this could be down to inertia. “For most consumers it’s not a particularly exciting product, like buying new car tyres,” he said.

One solution, in Waterson’s view, would be to make energy supply contracts subject to a fixed period of time.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

Guide for First-Time Buyers

Download our free, handy guide for first-time buyers, produced in association with the Post Office.

BNY Mellon launches investment guide for women

BNY Mellon has produced a free ‘Guide to Investing for Women' to provide an introduction to investing and lo...

Your ultimate guide to the new ISA rules

As the new ISA – or "NISA" – rules come into force, we explain what has changed and how you can benefit.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Shopping for the best rate can help your savings build over time.

Top tips for protecting yourself online

One in six adults has fallen victim to a cyber-attack, according to new research from Experian.

BLOG: Top tips for would-be entrepreneurs

As Global Entrepreneurship Week draws to a close James Benamor teaches Your Money how to get a business off th...

Stock tips from top fund manager: IP Group

James Henderson, manager of the Lowland Investment Company and Henderson Opportunities Trust, selects IP Group...

Speak to an Adviser

Do you need help with your finances? If you need quality independent financial advice, click here.

Money Tips of the Week

Spreadbetting promo

Spreadbetting explained
Close