@editor its distribution costs as far as I understand it. If you live next to a hyrdo plant the losses to get you the lower are very low. To move lots of power with low losses you need to step the voltage up and step down the current - using transformers. Its an annoyance of mine that being in the South means our power is usually 1-2p more expensive than say, in the midlands.

The cap depends on the network charge in your region rather than whether you live in a town or the middle of nowhere. The other point is that it's defined as a total amount, based on an average user (3100kWh/year), that includes the standing charge and the kWh charge.  That's why you need to work out the rate based on your usage as well as where you live. 

Mine will go up from 16.9p/kW to about 20p now that Neon Reef have folded.  That's compared to 11.6/7.6 day/night last year wirth Symbio, also gone bust.

I don't know if there is some secret formula by which energy prices are set in different areas of the country, but the following factors will I think be taken into account.

Underground cables are more expensive to install than overhead cables.

To transmit large amounts of electrical energy over long distances requires high voltage (132kV, 275kV and 400kV) transmission lines along with large step up and step down transformers. The higher the voltage, the more expensive the transmission line per mile to install. The larger the power rating of the transformer, the higher the cost. Of course, all this equipment also has to be maintained.

Even with the lower voltage (415V - 240V) local transmission networks, the poles and cables still have a cost per mile to install, so in rural areas were you have fewer consumers, the cost per mile per consumer will be higher.

Another factor is transmission losses. Not all the energy leaving the generators arrives at the consumers, because as electrical energy flows through conductors it generates heat due to the cable resistance. The more current that is flowing, the greater the loss. The same applies within the transformers. So the further that a customer is located away from the generator, the greater the losses. Someone has to pay for this lost energy.

Don't quote me, but I feel one of the main determining factors will be the consumer density within an area, the more people sharing the costs, the less each customer will have to pay. What I do believe happens within the system, is that customers in densely populated areas pay a little more than the actual true cost, and hence subsidise customers in rural areas, who pay substantially less than the true cost would be to connect them to the grid.

Another factor is that with the move from fossil fuel to greener supplies of energy, the transmission system is having to be modified to accommodate the different location of the generators with regard to the main loads.

A further factor is that even local distribution systems are having to be upgraded, to cope with the additional loads presented by EV's and ASHP's.

Bulb gone

https://www.theguardian.com/business/2021/nov/22/bulb-energy-which-supplies-17m-customers-collapses-into-administration

That's now 20 companies that have gone bust, Bulb being the largest. I noted that Bulb's International businesses in France and Spain are not affected. Which makes the current situation unique to the UK. The legislation that governs the UK energy market is obviously failing those that it is supposed to serve. I wonder what the government is doing about it? 

The UK electricity market is in a real state at the moment. We had a super interesting interview with an electricity expert a few weeks ago and he explains how the whole system works. It's fascinating. Im hoping to have the interview soon. It's a very interesting watch indeed.

I really dislike companies that hate sharing tariffs with customers. I've fully set up my account with E.ON this morning and it's impossible to find any information about out tariff going forward with them. I've just had an email citing the numbers we've mentioned above, but the information on the portal is devoid of any information.

I've always found E.ON to be severely lacking on transparency, and we still have a dispute (approaching three years) with E.ON Solar because they have quoted and charged us for an inverter we never received. 

@editor,

We've just been switched to British Gas; they make it quite easy to find the tariff:

or

I need to decide whether I want an E7 rate or not.  

Where are all these jumpers and warm socks ?... 😐 

This is a useful summary. It matches the rate BG has given me.  Vat included.

@editor @kev-m

Neon Reef customers have also been switched over the British Gas as well - we were put on their Welcome to British Gas tariff. TBH, it could be a lot worse, although it is a variable tariff, so  it could easily go downhill from here.

@justinsb ,

sorry should have said, I am ex NR.  Yes, what happens at the next cap review will be 'interesting'.

@kev-m TBH, I'm now thinking that I should go Economy 7, as my Solar Panels ought to take care of much of the daytime usage, hopefully.