Energy prices might be steadily rising for almost every homeowner in the UK, but there remains wide regional variations in the cost of electricity and gas of up to 10 per cent, according to new research.

Households in Southend-on-Sea on average pay £33.14 less annually for gas compared to residents in Inverness. Bills in are £295.30 on British Gas Click Energy 5, the cheapest tariff available, compared to £328.44 a year on average for those in Inverness on the same tariff.

Moneysupermarket.com, the price comparison website, which completed the research, said there was no tangible reason for the regional variations.

Earlier this year energywatch, the consumer watchdog, revealed that consumers in Wales are being charged around £19 million more for their electricity than consumers in England, or around 10 per cent more for the average household bill.

Even taking account of the extra costs of distributing energy in the region, the watchdog could not account for almost half the increased costs to households.

Households are encouraged to shop around for the cheapest provider in their region. However, despite the wide variations in energy prices, Moneysupermarket found that British Gas Click Energy 5 was the cheapest dual fuel tariff for households nationwide. The average consumer could save up to £224 by switching to the tariff, although customers in North Wales could save up to £276.

Paul Schofield, head of utilities at moneysupermarket.com, said: “Further price rises are a daunting prospect for many households, especially in the current economic climate. People need to ensure they are on the best tariff for their region and shouldn’t be lulled into thinking they will automatically get the cheapest deal if living in a providers ‘core’ area.”

Last week Centrica, the owner of British Gas, said customers should brace themselves for energy prices rises of up to a third before the end of the year.

The warnings of further rises have lead thousands of households to fix their bills.

Mr Schofield continues: "Fixing your energy tariff, could be an excellent option for those looking to protect payments against future price rises. However, people need to feel comfortable with being tied into to a product and provider, and be aware that, as well as carrying a premium, there is sometimes a cancellation fee for terminating these deals early."