Electricity and gas distribution charges, which are incurred by suppliers and passed through to consumers, vary regionally. These variations reflect the costs of maintaining and upgrading the distribution network in a specific area and the number of consumers between whom those costs are spread. This cost reflective approach helps to minimise overall network costs across Great Britain The price cap sets a limit on unit rates and standing charges, ensuring customers pay a fair price for their energy based on the true underlying costs of supplying it.