Regional pricing explained | Switch to Octopus

Energy prices in the UK are not the same everywhere. The unit rate you pay per kWh and the standing charge you pay per day both depend on where you live. The differences aren’t enormous, but over the course of a year they can add up to a meaningful amount.

The 14 electricity regions

Great Britain is divided into 14 electricity distribution regions, each managed by a Distribution Network Operator (DNO). These regions were established when the electricity industry was privatised in the 1990s, and the boundaries have barely changed since.

The regions and their letter codes are:

A - Eastern England
B - East Midlands
C - London
D - Merseyside and North Wales
E - West Midlands
F - North Eastern England
G - North Western England
H - Southern England
J - South Eastern England
K - South Wales
L - South Western England
M - Yorkshire
N - Southern Scotland
P - Northern Scotland

Note that the letter I is skipped (to avoid confusion with the number 1), which is why the sequence jumps from H to J.

These single-letter codes crop up everywhere in the energy industry. They appear in tariff codes on the Octopus API, on your electricity bill and in the MPAN (Meter Point Administration Number) that uniquely identifies your electricity supply point. Today the 14 licence areas are operated by just six DNO companies (UK Power Networks, National Grid Electricity Distribution, Northern Powergrid, SP Energy Networks, Electricity North West and Scottish and Southern Electricity Networks), though the regional boundaries remain unchanged.

Why prices differ between regions

Each DNO maintains the local electricity grid in its region: the substations, cables, pylons and transformers that carry power from the national transmission network to your home. The cost of running that local network varies for several reasons:

Geography matters. A region with lots of rural properties spread across a large area needs more cable and more infrastructure per customer than a densely populated urban region. Northern Scotland, with its sparse population and challenging terrain, tends to have higher distribution costs than London.

Infrastructure age. Some regions have older networks that need more maintenance and investment. Others have been upgraded more recently.

Renewable generation. Regions with high levels of renewable generation (particularly onshore wind in Scotland) may need grid reinforcement to handle the variable output, which adds cost.

Customer density. The fixed costs of maintaining the network are shared among the customers in the region. Fewer customers means each one shoulders a larger share.

The upshot: unit rates can vary by 1 to 3p/kWh between the cheapest and most expensive regions. Standing charges can differ by 10 to 15p per day. Over a year, the cheapest region might save a household £100 to £200 compared to the most expensive.

How to find your region

The simplest method: open the Octopus app and look at your tariff details. Your region is shown alongside your rates.

Alternatively, your MPAN identifies your region. The MPAN is a 13-digit number on your electricity bill. The first two digits indicate the region:

10 = Eastern (A)
11 = East Midlands (B)
12 = London (C)
13 = Merseyside/N. Wales (D)
14 = West Midlands (E)
15 = North Eastern (F)
16 = North Western (G)
17 = Southern (H)
18 = South Eastern (J)
19 = South Wales (K)
20 = South Western (L)
21 = Yorkshire (M)
22 = Southern Scotland (N)
23 = Northern Scotland (P)

You can also enter your postcode on the Octopus website when browsing tariffs, and they’ll automatically show you the rates for your region.

If you’re technically inclined, the Octopus API has a handy endpoint that returns the GSP group for any postcode: GET https://api.octopus.energy/v1/industry/grid-supply-points/?postcode=SW1A1AA. No authentication needed.

Gas regions

Gas distribution has a similar but separate regional structure. There are 13 Local Distribution Zones (LDZs) for gas, each managed by a Gas Distribution Network (GDN). The regions don’t line up exactly with the electricity regions, though there’s a lot of overlap.

Gas regional variation tends to be smaller than electricity. The distribution costs are a smaller proportion of the overall gas price, so the regional difference has less impact on your final bill.

How this affects tariff comparisons

When comparing tariffs, always check the rates for your specific region. A tariff that’s cheapest in London might not be cheapest in Northern Scotland. The Octopus website and app handle this automatically when you enter your postcode, but if you’re using the API or comparing manually, make sure you’re looking at the right regional rates.

The tariff comparison tool on this site accounts for regional pricing. When you enter your postcode, it pulls the correct rates for your area so the comparison reflects what you’d actually pay.

Can you change region?

No. Your region is determined by your physical address. Moving house is the only way to change it, and that’s not a particularly practical cost-saving strategy. The regional differences are worth being aware of, but they’re not something you can optimise for unless you happen to be choosing between two properties in different regions.

Northern Ireland

Northern Ireland has a completely separate electricity market and is not covered by the 14 GB regions listed above. Octopus does operate in Northern Ireland through a different entity, with different tariffs and pricing. The information on this site primarily covers Great Britain (England, Scotland and Wales).