The average home in the UK is paying £250 more for electricity than they should because of a little-known rule, a climate change think-tank has said.
Electricity suppliers in the UK have long paid the highest price all generators agree upon. Now, a new report from climate non-profit Carbon Tracker Initiative (CTI) claims more than seven billion pounds could have been shaved off household bills over the past two years if this system was fairer.
The price paid for electricity by supply companies such as Eon, OVO and SSE is determined by the result of a bidding process. Generators impose the highest bid on all, regardless of how the electricity is produced, with this price then passed on to bills.
