I actually don't know whether or not the regulator has considered whether regional differentials in distribution charges should be eliminated. Do you?
But if you accept that the price differences reflect differences in underlying costs*, harmonising charges would mean some combination of low cost areas (London) seeing price rises to subsidise higher cost areas and forcing price cuts in the higher cost areas. Bear in mind that prices (and so profits) are already constrained by the regulator.
* if there aren't differences in underlying costs, the distributors in high charge areas would be making super profits. And they're not.
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