Why is the company implementing price rises?
Npower has announced it will increase its prices, it’s also one of the biggest price hikes to come from a “Big Six” supplier.
From the 16 March the company is set to raise its standard tariff electricity prices by 15 per cent, gas prices will rise by 4.8 per cent.
The typical dual fuel annual energy bill will rise by an average 9.8 per cent, or £109.
Npower have said these changes will affect roughly half of its customers, the other half are on fixed-term deals so will therefore see no change in price.
The 1.4m customers on existing standard tariffs will have the opportunity of going to a four-year fixed-price tariff which comes with a 4.8 per cent discount.
The energy giant blamed the increases on the rises in wholesale costs, as well as the cost of delivering the government’s policies such as smart meters and the renewables obligation.
Simon Stacey, Npower’s managing director of domestic markets, said: “This is a hugely difficult decision, and we’ve delayed the date this takes effect until after one of the coldest months of the year,”
Editor in Chief of money.co.uk Hannah Maundrell said: “These price hikes are a big shock to the system for customers and seem really unfair. If you’re with Npower it’s definitely time to look elsewhere and switch if you’d be better off.”
“This is a slap in the face for many already struggling families. It is a stark reminder that we all need to be tightening our purse strings to cope with price rises and looking where we can make savings. Make a budget and stick to it like glue. Review all your outgoings and haggle – there are always savings to be had”