How to fight back against the energy 'postcode lottery'

In a time when British homeowners are doing everything they can to tighten their purse strings and ensure finances don't stray into the red, it's important to keep an eye on every aspect of your monthly outlay.

And that, of course, includes the amount you're shelling out on fuel.

After the harsh winter seen at the end of 2009 and start of this year, many may have been amazed at how much it costs just to keep their properties warm even though they thought they were on a regular price plan.

Households may pay more due to their location

However, one thing householders may not have considered is that it's not so much a case of the tariff they've chosen, but where they actually live.

According to uSwitch - which allows consumers to compare the price of utilities, financial products and telecoms - households currently have to deal with a "postcode lottery", with some consumers having to pay almost £200 more each year just because of their location.

That's even if they use the same amount of energy, are on the same tariff and pay by the same method as others elsewhere.

For example, statistics from the firm show a customer on Scottish Power's Online Reward Energy deal pays £842 every 12 months in Nottingham, but £1,031 in Cardiff.

To highlight how commonplace this issue is, the data also revealed homeowners on the Online S@ver 6 package offered by EDF Energy costs £959 per year in Bristol, but £865 in Nottingham.

Commenting on the findings, Ann Robinson, head of consumer policy at uSwitch, noted: "Ofgem's push on cost-reflective pricing may iron out some of the extremes, but the fact is that while suppliers choose to target their ultra-competitive online plans regionally we will continue to see a postcode lottery.

"Regional pricing is a key part of the competitive battlefield - the important thing is for consumers to avoid becoming a casualty."

How can we avoid paying over the odds for utilities

So how exactly can we do that and ensure we're not paying through the nose for our fuel?

"Consumers cannot assume that their local supplier will automatically be cheaper - very often they are not," Ms Robinson explained.

For that reason, the most important thing for individuals to do is to be fully aware of this problem and try as best they can to keep the costs down, she said.

As for advice on how to do so, Ms Robison stated: "They can do this by making sure they move to the most competitive plan with the most competitive supplier in their region.

"Even though all suppliers offer their cheapest prices online, these can vary by as much as £155 in one area, which is why it's so important for households to shop around."

Keep an eye on the markets

So there you have it - unsurprisingly it would appear that keeping an eye on the markets and comparing prices as much as you can is a good idea when it comes to your energy suppliers, as with everything else these days.

After the recession, cash-strapped Brits won't need to be asked twice to save some pennies, but they do need to know where their hard-earned money is going and what the effect of this 'postcode lottery' is on their bank balance.