Npower announces price hike
15th February 2017 | Residential Energy
Npower announced that customers are to face a 9.8% price hike for gas and electricity. This move will add £109 to their annual dual fuel bills. The Big Six energy firm said the move comes in the face of rising wholesale energy costs. It will affect 1.4 million customers on their standard variable tariff.
Simon Stacy, managing director of Npower’s domestic markets, said it was a “hugely difficult decision.” “We’ve delayed the date this takes effect until after the coldest months of the year. We’ve also made sure that our most vulnerable customers won’t see any impact until May,” he added.
The prices increase on typical dual fuel annual energy bills is made up of an average of 4.8% on gas and 15% on electricity. The new charges will come into effect on March 16. Npower said another 1.4 million fixed rate and pre-payment customers will not be affected by the price increase.
“Since npower last raised its prices three years ago, there have been increases in wholesale energy costs and rises in the cost of delivering Government policies, such as smart metering, renewables obligation and the capacity market. This trend is set to continue,” the firm said.
The move comes after rival EDF hiked prices in December.
Mr Stacy added, “Npower operates one of the broadest range of support schemes of any supplier, offering the widest and most diverse care programmes for vulnerable customers and those who are struggling with their energy bills.
We’re already delaying the impact of the increase for vulnerable customers, but anyone who is struggling with their energy bills should contact us straight away to discuss whether they’re on the right tariff for their needs, energy saving help and bespoke payment plans.”
Experts believe Npower’s move could be a precursor for other energy providers ramping up prices.
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