npower follows British Gas with energy price rise

Energy supplier npower has announced a price rise of 8.8% for gas and 9.1% for electricity. The news comes only a few hours after British Gas decided to hike its […]

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By Priyanka Shrestha

Energy supplier npower has announced a price rise of 8.8% for gas and 9.1% for electricity.

The news comes only a few hours after British Gas decided to hike its prices by 6%.

The German-owned supplier’s new price, which will come into effect on Nov 26th, means the energy bill for its domestic customers could be as high as £1,352.

Paul Massara, Chief Commercial Officer at npower said: “There is never a good time to increase energy bills, particularly when so many people are working hard to make ends meet. But the costs of new statutory schemes, increases in distribution charges and the price of gas for the coming winter are all being driven up by external factors, for example Government policy. Although we have managed to smooth out the worst fluctuations and protect our customers for as long as we can, we are now having to pass on some of these costs.”

With two energy suppliers announcing price rises on the same day, Consumer Focus said this will “reinforce the views and prejudices of consumers – whether justified or not – about a lack of transparency and competitiveness in the market”.

Audrey Gallacher, Director of Energy at the consumer group said: “People are not convinced that they are getting a fair deal. Unless they can be reassured about the relationship between costs, prices and profits, consumer distrust will continue, companies won’t get their message across and the success of the regulator will be questioned. Consumers need to see the Government and regulator taking big steps to help mitigate the rising cost of energy for customers.”

SSE’s price rise announced earlier this month will come into effect next Monday.