Npower has announced the biggest bill hike yet.
Npower customers will see an average price increase of 10.4% from 1st December, the energy provider has confirmed.
It’s the highest price rise to be announced so far. Electricity prices will go up by 11.1% while gas costs are shooting up by 9.3%.
The move follows on from British Gas and SSE which have both announced winter price hikes.
Energy price hike
Npower has blamed the increase on a rise in the cost of supplying energy, fulfilling Government schemes and the price of the raw materials used to supply energy.
[SPOTLIGHT]Paul Massara, chief executive officer for npower, said: “I know that any increases to household bills are always unwelcome, and this is not a decision that we have taken lightly. We will continue to take steps where we can to reduce the impact of the external influences on energy bills.”
He also slammed the Labour Party’s proposed price freeze, which he says may appear superficially attractive but will not lead to lower sustainable prices going forward. The real issue, he claims, is the growing cost of energy.
“Only 16% of the bill is under our control and imposing price controls discourages investment, increases uncertainty and ultimately leads to higher prices,” he added.
Price rises
SSE was the first energy supplier to announce a price hike of 8.2% which will come into effect from 15th November.
British Gas followed last week with a price rise of 9% which customers will start paying on 23rd November.
Historically all the ‘big six’ providers announce hikes around this time of year. Therefore it’s likely the remaining three, EDF, E.ON and Scottish Power will soon follow suit.
How to avoid paying more
Price rises are seemingly unavoidable with the energy companies often pushing up the amount they charge for gas and electricity. There are numerous ways to cut down the amount of energy you use, such as turning the thermostat down and making sure your house is properly insulated.
You could also move to a fixed rate tariff which will guarantee your prices to be locked in for the duration of the tariff. In the table below you can see and compare the cheapest prices right now.
|
Supplier |
Tariff |
Average Cost |
Saving vs non switcher's typical bill* |
Fixed until |
|
First Utility |
£1,170 |
£250 |
30th April 2015 |
|
|
ScottishPower |
£1,181 |
£239 |
31st March 2015 |
|
|
EDF |
£1,183 |
£237 |
31st March 2015 |
|
|
npower |
£1,202 |
£218 |
30th April 2015 |
|
|
ScottishPower |
£1,204 |
£216 |
31st December 2014 |
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