Customers who believe energy companies will reward them with lower prices for being loyal or if they buy their energy from the “local” energy suppler are deluding themselves, according to research by
Confused.com.
The price comparison website has revealed energy providers charge more to loyal customers and those living in the geographical area of their supplier. Confused.com estimates that 33 per cent of domestic electricity customers remain faithful to their home supplier.
Confused.com says the worst offender is nPower, which charges those in Yorkshire 12 per cent more than their average price across other regions, amounting to an extra £48 a year.
EDF are the only angels amongst providers, they do not apply any extra charges to their London region, and in fact the average price comes out £2 cheaper per year than their competitors.
Since the domestic electricity market was opened to competition in 1998, energy companies have no longer held a monopoly over the supply for any single region - thus enabling consumers to shop around for the best deal regardless of their postcode.
However, the research from Confused.com reveals how energy companies seem more interested in playing away than helping those at home. Confused.com is urging customers to take the initiative and make the most of the open marketplace rather than accepting what they're given if they want to avoid being exploited for their loyalty.
“Our research suggests that, despite fierce competition in the energy market, the energy suppliers continue to be more willing to compete on price in an attempt to gain new business than they are in retaining and rewarding loyalty in their old monopoly trading regions,” said Gareth Kloet, head of energy at Confused.com.
“'Out of area' pricing is still more competitive than 'in area' prices and therefore the age old rule about shopping around and switching supplier in order to save money is as strong today as it was over a decade ago."
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