Why Londoners pay more for electricity – even under Liz Truss’s new price cap

liz truss

People living in London will pay more for their energy usage than those in the Midlands or Scotland, even under Prime Minister Liz Truss’s “Energy Price Guarantee”.

Under the new rates that came into effect today, a typical household will pay £2,500 a year for their energy usage.

The Price Guarantee, which will replace the energy price cap set by regulator Ofgem, limits the rate at which households are charged per unit of gas and electricity – and the £2,500 figure represents the average household energy bill from October onwards.

This figure is based on typical energy consumption by a household of between two and three people – meaning families of three or more are likely to pay more than £2,500 a year.

The average annual energy bill also varies by region due to different distribution charges across the country. This means households in London pay a higher rate for their energy usage than almost every other region in the UK.

According to the Government, households will pay 34p per kWh of electricity they use. In London, however, the unit rate for electricity is slightly higher – at 35.8p.

Under London prices, a washing machine will cost 80p per cycle – 17p more than it did in September under the previous cap. The cost of running a dishwasher will also rise from £1.08 to £1.36 per cycle.

Those living in the capital will pay £2,524 a year on average, compared to households in the East Midlands, who will pay £2,457.

Only those living in North Wales and Mersey, where the average annual bill will rise to £2,566, pay more than households in the capital.

Rates differ between regions because suppliers set prices based on differences in network charges, which reflect how much it costs to transport energy to where customers live.

A spokesman for Ofgem explained electricity distribution charges are higher than average in North Scotland, Merseyside, and north Wales and the southwest of England and lower in London and eastern England.

Electricity and gas distribution charges, meanwhile, are higher in the south of England and lower in Scotland. Gas distribution charges are higher in London and the south of England and lower in Scotland and the northeast of England.

Households in the North of Scotland are shielded from higher rates by the Assistance for Areas with High Electricity Distribution Costs scheme, formally known as the Hydro Benefit Scheme, Ofgem added.

Sign up to the Front Page newsletter for free: Your essential guide to the day’s agenda from The Telegraph – direct to your inbox seven days a week.

Prince Harry and Meghan fly in to collect historic award for 'heroic' racism stance

Maserati agrees deal with historic car dealership group for new Poole showroom

This is some World Cup Cristiano Ronaldo is having and it’s not over yet

Meghan and Prince Harry dodge press questions about Netflix documentary at NY awards ceremony

Punching above their weight: Small building societies now offer some of the best savings rates - but customers will have to open accounts in person

Flowers, balloons and a 'crappy morning coffee': Inside Brittany Higgins' 28th birthday in hospital as she shares footage from her ward and her boyfriend shares a gushing message

Meghan Markle opens up about her suicidal thoughts and how she and Prince Harry want to be 'advocates of healing' while accepting 'anti-racism' award at NYC gala: 'You don't see a way out'

Michelle Mone to take 'leave of absence' from House of Lords amid PPE allegations

'Why on earth would I want to cycle on a waterlogged path?' New bike path criticised

Uber is hit with a mammoth $21m fine for charging Aussies dodgy cancellation fees and 'misleading' customers about fare prices

Soccer-Genoa's Portanova sentenced to six years for gang rape

Eddie Howe admits FFP could limit Newcastle in January transfer window, with move for James Maddison extremely unlikely and ‘one in, one out’ most probable

New generation, same old problems: How Spain’s World Cup fell apart

Are there any World Cup games today? Full schedule, kick-off times and fixtures

Morocco take over a World Cup that should always have been theirs

Diners wowed by Taunton's first Middle Eastern/Mediterranean restaurant

NEWS RELATED

Robert Downey Jr on what he misses about the MCU

Robert Downey Jr may have left the Marvel Cinematic Universe behind, but he still sometimes misses donning the Iron Man suit. In a recent chat with Deadline, the Marvel star looked back on his Tony Stark days, recalling his time “in the trenches” with affection. “What I miss most? Being ...

View more: Robert Downey Jr on what he misses about the MCU

POTATOES could hold the cure for cancer, scientists think

Polish scientists say compound in potatoes could be the key to fighting cancerIt is thought this compound will have less side-effects than chemotherapyStudies show aubergines can help fight liver cancer by stopping the reproducingExperts also say compound in tomatoes could kill cancer cells

View more: POTATOES could hold the cure for cancer, scientists think

Get me out of here! INSIDE Boy George's home that includes colourful artwork and designer furniture - and is up for grabs for £17million

Spectacular London home of Boy George includes plenty of colourful artwork and designer furnitureThe semi-detached house features a central staircase in an impressive triple height central hallThe stunning six-bedroom property overlooks Hampstead Heath and is on the market for £17million 

View more: Get me out of here! INSIDE Boy George's home that includes colourful artwork and designer furniture - and is up for grabs for £17million

Met Office issues ICE warning as 'Troll of Trondheim' bears down on Britain: Snow to hit TODAY with Arctic blast set to whip country with blizzards and -9C plunge

Britain is set to freeze under a sheet of ice as 'Troll of Trondheim' blasts countryScotland is set for plunging temperatures, snow, ice and blizzards todayThe Met Office has issued yellow weather alerts for today and tomorrow

View more: Met Office issues ICE warning as 'Troll of Trondheim' bears down on Britain: Snow to hit TODAY with Arctic blast set to whip country with blizzards and -9C plunge

Video: Flowers, balloons and a 'crappy morning coffee': Inside Brittany Higgins' 28th birthday in hospital as she shares footage from her ward and her boyfriend shares a gushing message

Emma Thompson opens up about her dance moves at Adele concert and reveals she doesn't watch Love Actually every holiday season on The Tonight Show

Nearly a year after going viral for her uninhibited dance moves at an Adele concert, Emma Thompson is opening up about the concert on The Tonight Show. The 63-year-old Thompson returned to The Tonight Show to promote Matilda The Musical, debuting on Netflix on Christmas Day. She discussed why she ...

View more: Emma Thompson opens up about her dance moves at Adele concert and reveals she doesn't watch Love Actually every holiday season on The Tonight Show

Jessica Simpson is a chic 'snow bunny' as she poses with lookalike daughters Maxwell and Birdie during family ski trip in Aspen

Jessica Simpson glammed up to hit the slopes during a recent family trip to Aspen, Colorado. The 42-year-old songstress-turned-entrepreneur had fun with her fashion as she posed in photos with her two daughters. Maxi Drew, ten, and Birdie Mae, three, were their mother’s mini mes as they appeared in sweet ...

View more: Jessica Simpson is a chic 'snow bunny' as she poses with lookalike daughters Maxwell and Birdie during family ski trip in Aspen

Video: Off-Broadway staple Stomp will end its 30-year run in NYC's East Village - with final performances of 'hard-to-describe show' in January

Offset asks followers to remember fallen friend Takeoff 'in good light' ... after fatal shooting of musician at 28

Night off mum duties! New mother Rebel Wilson shows off her slimmed down figure in an embellished gown at the AACTA Awards after welcoming daughter Royce Lillian via surrogate

Roy Keane wants no World Cup frills but flamboyance is a birthright for Brazil's superstars - Keith Jackson

Michelle Mone urged to quit House of Lords over PPE contracts controversy

Huge ground source heat pump factory officially opens in Cornwall

UK weather forecast: Arctic deep freeze to last nearly two weeks as snow smothers nation

Football rumours: Barcelona keen to offload Frenkie de Jong

Mother of baby who died after Strep A infection warns parents to look out for key signs

Cristiano Ronaldo role at World Cup ‘to be defined’, Portugal coach reveals

The apple doesn't fall far from the tree! Alyssa-Jane Cook's daughter Georgia May Davis is the spitting image of the E Street star as she stuns on the red carpet at the AACTA Awards

San Francisco reverses course on 'killer police robots' amid fierce pushback and warnings about militarization and automation of policing

Royal Family to meet at Kate Middleton's concert in 'united front' as Harry and Meghan's Netflix documentary airs

OTHER NEWS

Breaking thailand news, thai news, thailand news Verified News Story Network