UK energy giant npower has become the fifth of the Big Six energy providers to announce changes to domestic retail prices. As of Saturday 1st October, the average consumer’s dual fuel bill will increase by 12.2%. Customers on a standard monthly direct debit account will see an increase of 37p per day.
To help customers deal with rising energy prices npower has introduced a new deal, which fixes the rates until March 2013. The new rates, npower say, are £30 per year cheaper than their nearest competitor British Gas.
Speaking exclusively to ELN, npower Chief Operating Officer Kevin McCullough, justified what many critics have labelled as inflation-busting prices: “We disagree that the long-term trend is downward. Over the last five years wholesale prices in gas, coal and oil have more than doubled.”
npower also defended their purchasing in face of falling wholesale markets. They say they buy their energy up to three years in advance, which make short term spot market changes have little influence.
Mr McCullough said npower were instead more focused on financing the future: “We have a huge investment plan. For every pound that we make at the moment, we’re actually investing about three and that’s not sustainable.”