Site slams "loyalty tax" on regional electricity supply

13/05/2009

Regional loyalty among electricity customers could mean unnecessary extra payments, according to one financial website.

Figures from uSwitch.com show that people are paying up to £111 a year more for their electricity by failing to switch to a cheaper deal.

This is equivalent to 33 per cent of total annual electricity costs.

Ann Robinson, director of consumer policy at the site, said: "Suppliers are charging local customers a loyalty tax, but the upside is that they are providing a really good incentive for households to switch, which is what competition is all about.

"This issue is completely in consumers' own hands, as these extra costs are avoidable if they use the market."

uSwitch.com also claimed that there was a "postcode lottery" at work in the UK in terms of electricity payments.

The report showed that typical electricity costs varied from £335 a year to £482, depending on the region.

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