Cost of living crisis: Why the energy price cap is lower in Sheffield than in much of the UK and how it varies

Gas and electricity bills are set to soar across Britain in October, but there is some good news for households in Sheffield.
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They will be paying slightly less than people in many other areas, due to a little-known quirk of the energy price cap.

The average energy price cap across Great Britain for a household with typical gas and electricity use is due to rise from £1,971 at present to £3,549 from October 1.

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The new energy price cap in Sheffield will be lower than in many parts of Britain due to a quirk in how the limit is set by the regulator Ofgem (file photo by PA)The new energy price cap in Sheffield will be lower than in many parts of Britain due to a quirk in how the limit is set by the regulator Ofgem (file photo by PA)
The new energy price cap in Sheffield will be lower than in many parts of Britain due to a quirk in how the limit is set by the regulator Ofgem (file photo by PA)
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But the price cap – which is how much typical consumers will pay if they are not on a fixed deal – actually varies slightly by region.

In Yorkshire, which includes Sheffield, the price cap is set to rise from £1,943.55 to £3,520.65, with the new cap being £28.35 less than the British average.

The new price cap will be highest for households in North Wales and Mersey, at £3,615.15, and lowest in the Northern region, at £3,494.40.

Why is the energy price cap different depending on where you live and who pays the most?

The price cap is set by the regulator Ofgem and varies slightly as it takes into account the cost of transporting gas and electricity to people’s homes, which is a more expensive affair in some regions than others.

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The gap between the highest and lowest regional price caps, as of October 1, will be just under £121 a year. That may not be a huge amount in the grand scheme of things but at a time when every penny counts it could make a big difference.

The energy price cap has been widely forecast to rise sharply again in January, though new Prime Minister Liz Truss is expected to announce plans to freeze the cap to help people through the winter, with details of how that will be done yet to be set out.

Below are the current energy price caps for a typical consumer in the different British regions, with the new cap for that area in brackets.

North West: £1,947.75 (£3,520.65)

Northern: £1,930.95 (£3,494.40)

Yorkshire: £1943.55 (£3,520.65)

Northern Scotland: £1,971.90 (£3,531.15)

Southern: £1,980.30 (£3,562.65)

Southern Scotland: £1,967.70 (£3,550.05)

N Wales and Mersey: £2,014.95 (£3,615.15)

London: £1,978.20 (£3,573.15)

South East: £1,984.50 (£3,567.90)

Eastern: £1,966.65 (£3,549)

East Midlands: £1,938.30 (£3,505.95)

Midlands: £1,967.70 (£3,550.05)

Southern Western: £2,008.65 (£3,578.40)

South Wales: £1,988.70 (£3,564.75)

GB average: £1,970.85 (£3,549).