Npower to raise energy bills for millions of customers by 9.8% – adding an average of £108 a year
Half of Npower's 2.8million customers will see their bills go up by an average of £109 a year
MILLIONS of Npower customers will see their bills rise by an average of 9.8 per cent - adding £109 a year to gas and electricity costs.
The energy firm said that half of its 2.8 million customers would be affected by the increase to bills from March 16.
The price rise is made up of an average increase of 4.8 per cent on gas and 15 per cent on electricity.
Npower said that pre-payment customers and those on its fixed-rate tariff would not be affected by the rise.
It is the second of the 'big six' firms to announce a price change for customers.
In December, EDF Energy announced it would lower gas prices by 5.2 per cent for those on its most expensive tariff but that electricity bills will rise by 8.4 per cent in March.
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It follows promises from Scottish and Southern Energy, British Gas and E.ON that they would freeze prices this winter.
Energy bills are calculated depending on where you live. Suppliers split the UK into 14 different areas and price energy bills depending on where you live and how you pay.
If you're an Npower customer you could see your bill go up by as much as 12 per cent, while some areas will only see a rise of 7.9 per cent.
Npower customers who pay by monthly direct debit in Merseyside, North Wales and parts of Cheshire will see their bills go up by a maximum of 12 per cent - adding £124 a year to bills.
While those living in Yorkshire and the midlands will see bills rise by 8 per cent.
Theresa May branded the eye-watering increase “concerning” and said the Big Six had to treat customers fairly.
The PM’s official spokesman hinted that Downing Street also refused to believe the price hike was merited – given suppliers are “protected” from wholesale price moves.
He said: “Obviously we are concerned by Npower’s planned increases. The Government is committed to getting the best deal for households.
“Suppliers are protected from the recent fluctuations in the wholesale energy prices in which they are buying up to two years in advance.
“So we expect energy companies to treat their customers fairly, and are being clear that where markets aren’t working we are prepared to act.”
Hannah Maundrell, editor of money.co.uk, said: “This is a slap in the face for many already struggling families.
"It’s 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.”
HOW TO GET A CHEAPER ENERGY BILL
MILLIONS of households across the UK have never switched energy providers and are languishing on standard variable tariffs, which are often the most expensive around.
Around 70 per cent of people are on bog-standard expensive standard tariffs, when they should be shopping around for a cheapest deal.
If in doubt, call your provider and call other providers to ask them what their cheapest fixed tariff is.
Better still, use a comparison website, like uSwitch or MoneySupermarket to find the very best deal for you. By switching providers you could save hundreds of pounds a year.
Bear in mind that the amount you pay for your energy varies depending on where you live.
Simon Stacey, from Npower, 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 3.
“Npower has some of the most engaged customers of any major supplier - one million of our customers switched to another of our tariffs last year and around half of our customers aren’t on a standard variable tariff (SVT).
"To encourage even more engagement, today we’re launching a fixed tariff just for our existing customers who are still on an SVT, that will fix energy prices for the next four years with no exit fees.”
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