Npower announces huge double digit price increase
04/01/2008
In a recent announcement, npower said it will increase prices by an average of 17.2% for gas and 12.7% for electricity for domestic customers across the board. Although the announcement has not come as a surprise, it will not be welcomed by over four million households across the UK supplied by npower.
Average household energy bills will now go up by as much as £159 for npower customers, pushing annual bills past the £1,000 mark.
Stating higher wholesale energy prices and increased distribution costs, npower says that it has been left with little choice but to increase domestic energy prices for its customers.
npower is the first of the big six energy suppliers to announce price increases, but industry analysts expect the other major suppliers to follow in the coming weeks. Traditionally, when price hikes are expected British Gas is the first to announce increases the other suppliers rapidly follow suit.
In December British Gas and npower increased prices on their market tracker tariffs and released statements about the “difficult environment” they were operating in. Watchdogs said they were “softening up” consumers for coming price increases.
"Today's decision was not an easy one” said Giuseppe Di Vita, npower’s MD of residential business “We always try to protect our customers for as long as possible but sadly higher energy prices are a fact of life.”
However, in an earlier statement, Energywatch spokesman Karl Brooks urged suppliers to compete with good value products rather than load the risk of wholesale costs onto their customers.
When npower announced they would lower prices in 2007, customers had to wait two months for the cuts to be implemented.
npower’s price increases take effect Saturday 5th January, just one day after they were announced.
Why not use our price comparison form now and find out how much you could be saving on your energy bills.
Back to Top