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A typical household in Leeds pays almost £72 less for the same amount of energy than one in Liverpool – and nearly £13 more than one in Newcastle.

The reason is that while many consumers think there is a single energy price cap covering the entire country, there are actually a series of regional caps in operation.

Depending on where people live, it can mean they are paying as much as £84 more than customers in other regions despite using the same amount of energy.

What is the energy price cap and how is it calculated?

The energy price cap is due to rise significantly on October 1 unless new Prime Minister Liz Truss announces a freeze as many expect. Picture: Yui Mok/PA Wire

The energy price cap represents the highest amount paid annually by the typical household.

It has become the amount that many households are having to pay as prices continue to rise, unless they are on a fixed tariff for their electricity and gas.

It is set by energy regulator Ofgem and takes into account the cost of transporting gas and electricity to people’s homes.

This is a more expensive business in some parts of Britain than others, so Ofgem sets regional caps for different areas.

Energy price cap - What level gas and electric bills are capped at in Leeds and how it compares to other areas