Energy regulator Ofgem has said Npower must “justify” to its customers why it is introducing one of the largest energy price rises for years. The government also said it was “concerned” by the increase, while a former boss of Npower called the rise “shocking”. The company will raise standard tariff electricity prices by 15% from 16 March, and gas prices by 4.8%. A typical dual fuel annual bill will rise by an average of 9.8%, or £109. Npower said the changes would only affect about half of its customers. The other half are on fixed-term deals and will see no price rise. The rise in electricity prices is thought to be the largest since 2008, when some suppliers increased charges by up to 19%. Some gas prices went up by a similar amount in 2011.
BBC 3rd Feb 2017 read more »
Npower faced heavy criticism yesterday after announcing that it was raising energy prices by an average of 10 per cent, adding £109 a year to the typical bill of 1.4 million households. The company blamed a combination of rising wholesale gas and electricity costs and government policies for the increase, despite Ofgem, the regulator, saying that its analysis showed no “obvious reason” for major suppliers to raise their standard tariff. The government said that Npower’s customers were “already paying more than they need to” and threatened to intervene over the price rises.
Times 4th Feb 2017 read more »
Theresa May has threatened to intervene over NPower’s “shocking” price hikes, which will push up 1.4 million households’ energy bills by over Â£100 a year. The energy giant is putting up the cost of standard tariffs by 10.4pc from March in a move which represents the biggest rise in energy costs for consumers since 2013. NPower is blaming costs attached to the Government’s own “smart meter” policy and higher wholesale energy prices as key factors in its “hugely difficult” decision to make loyal customers pay more for gas and electric. Similar price rises from other “Big Six” energy providers are expected to follow, with experts predicting that by the end of April all six will have raised prices by between 5pc and 10pc.
Telegraph 3rd Feb 2017 read more »
Consumer groups are urging people to check their energy bills following news that millions of Npower customers will see bills rise by nearly 10 per cent on average – equivalent to £109 a year. One of the “big six” energy providers, Npower said that half of its 2.8m customers would be affected by the planned rise in mid-March, when electricity prices will go up by an average of 15 per cent and gas by 4.8 per cent. Describing it as a “hefty rise” that would make a “significant dent to customers’ wallets”, Stephen Murray, energy expert at the price comparison website Moneysupermarket, said he hoped it would spur more people to switch energy providers. However, only a fraction of consumers ever bother. Those who do often complain about the overly complicated process, as there are about 140 different energy tariffs to choose from. But the process of switching is simpler than people might think.
FT 3rd Feb 2017 read more »
Npower has increased average energy bills by almost 10 per cent for half its customers in defiance of a warning from the industry regulator against price rises. The utility blamed rising wholesale costs and government policies, such as subsidies for renewable power, for contributing to its first rise in more than three years. Npower, part of Innogy of Germany, is the second of Britain’s “big six” energy suppliers to raise prices this winter after EDF of France. But the average 9.8 per cent increase facing about 1.4m Npower customers on standard “dual fuel” gas and electricity tariffs is much higher than the average 1.2 per cent increase announced by EDF in December.
FT 3rd Feb 2017 read more »