The difference in the cost of energy for households in the UK has increased by 50% in the past year, new research from energyhelpline.com has revealed.
This means some consumers are paying £92 more per year for their gas and electricity just because of their postcode.
Households in Merseyside and North Wales are paying the highest amount, with average annual bills of £1,373 followed by those living in the West Midlands, who pay an average of £1,333.
Consumers in the north of Scotland have the cheapest bills, paying an average of £1,281 a year, while bills are second cheapest in the East Midlands at an average of £1,291.
Mark Todd, director of energyhelpline.com, says: "There is little logic to this postcode lottery. [widget:10667] For example, customers in the West Midlands are paying £42 a year more than their neighbours just across the border in the East Midlands. The north of Scotland has the lowest typical prices in the country, whereas the rest of Scotland has some of the highest.
"It's difficult to explain these variations other than the fact that suppliers charge what they feel they can get away with. Often, the disparities arise because loyal customers stick to the same suppliers and these areas become profit hot spots. Switching supplier is the best way to send a message that higher prices will not be tolerated," he adds.
Todd says consumers can save money on their energy bills wherever they live by switching providers. For example, in Merseyside and North Wales there is a difference of £328 between the most expensive and the cheapest energy offers available.