Npower price rise sees customers hit for MILLIONS in new bills
NPOWER has announced details of a hefty 5.3 percent hike on the cost of gas and electricity which will costs customers millions.
Energy provider NPower's 5.3 percent price rise will hit one million customers
It comes in the wake of similar moves by other companies.
British Gas is raising prices by 5.5 percent from May 29, and Scottish Power by the same percentage on June 1.
NPower says the rise is partly the result of the introduction of smart meters
Explaining the decision, German-owned Npower said it was driven by the wholesale cost of energy and changes to government policy.
Simon Stacey, managing director, domestic markets at Npower, said: "Announcing this price change today isn't a decision we've taken lightly."
Wholesale costs which energy companies have to pay had been on the rise for some time, he said, adding: “We need to reflect these in our prices.”
Energy companies also attribute the rise to changes in government policy, including the introduction of smart meters and new regulations concerning emissions targets.
Martin Lewis: NPower and other providers will rise prices
Npower’s 5.3 percent average price increase comprises a 4.4 percent rise in gas prices and a 6.2 percent rise in electricity prices.
It will mean a typical dual fuel bill goes up to £1,230.
Mr Stacey said the rises would not apply to existing customers on a fixed deal, anyone on a prepayment meter, or customers on the Safeguard tariff.
Stephen Murray of MoneySuperMarket, said: "This is a chunky rise from Npower.
All we need now is something from SSE and it's a full house from the Big Six
“All we need now is something from SSE and it's a full house from the Big Six.
"Npower says 60 percent of its customers won't be affected but that still means 40 percent – or one million people – will."
Mark Todd, co-founder of switching service Energyhelpline, said: "The most expensive standard tariff just got more expensive."
British Gas’s price rise will hit 4.1 million customers, costing them an extra £60 annually, while almost a million Scottish Power customers face paying an extra £63 a year.
EDF is imposing a 2.7 percent increase equivalent to £16 a year on June 7 which will apply to 1.2 million customers.