Energy company Npower has announced that it will raise standard tariff electricity prices by 15 per cent and gas prices by 4.8 per cent.
Representing one of the largest single price rises implemented by a ‘Big Six’ supplier for years, the announcement will mean a typical dual fuel annual energy bill will rise by an average of 9.8 per cent, which is £109 more expensive. The changes in bill will impact 1.4 million customers, approximately 50 per cent of Power’s clients.
The company put the increases in wholesale energy costs and rises in the cost of delivering government policies, such as smart metering, renewables obligation and the capacity market, as the reasons behind the hike.
Simon Stacey, managing director for domestic markets, 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.
“We’re already delaying the impact of the increase for vulnerable customers, but anyone who is struggling with their energy bills should contact us straight away to discuss whether they’re on the right tariff for their needs, energy saving help and bespoke payment plans.”