npower to hike prices by 9.8% for 1.4 Million customers
npower announce 4.8% increase on gas and 15% on electricity
npower customers are to face a 9.8% increase in their bill, after the big six supplier announced they would be hiking prices on their standard variable tariff.
The price rise of nearly 10% is made up of a 4.8% increase on gas and 15% on electricity.
The increase is set to affect over 1.4 million customers, and will mean that the typical household will now pay £109 more on their annual gas and electricity bill.
The move is a slap in the face of regulator Ofgem, who just two weeks ago published their supplier cost index which suggested that there was no case for any of the big 6 to raise prices.
Npower’s Simon Stacey, managing director domestic markets, has said:
“This is a hugely difficult decision, and 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.
“Today we’re launching a fixed tariff just for our existing customers who are still on an SVT, which will fix energy prices for the next four years with no exit fees.”
Mark Todd, co-founder at energyhelpline, has made the following comments:
“This is a shocking price rise and a big kick in the teeth to npower standard tariff customers. To beat the price rises consumers need to compare prices and switch to a fixed rate tariff. This is one guaranteed not to rise in price typically for one to two years.”
“Get yourself to a price comparison site or call one up and ask for a comparison. It only takes a few minutes to get a quote and about ten minutes to do a switch. Switches take around 2-5 weeks to go live. You will beat these hikes if you switch now, meaning you’ll be off npower Standard before March 16th when the price rises kick in.”
“Most customers will be able to save £100-£200 a year now switching and so those savings will be worth £200-£300 a year once the price rise comes into effect”.
“The npower price rise is likely to open the floodgates. Expect more rises of 5-10% from other big energy companies through February.”
“Remember if you don’t switch it’s only your energy supplier that’s going to get rich. Don’t over pay on your energy bills switch today.”