Npower to increase dual fuel prices by 12.2%
Npower dual fuel customers will soon notice their bills increase by 12.2% as the energy giant has become the latest of the Big Six to hike its prices.
The company has announced that, as of Saturday 1 October, its gas prices will increase by 15.7% and electricity by 7.2%.
Kevin Miles, Chief Commercial Officer at Npower, said: ‘I know it hurts everyone when we put up prices and I wish we didn’t have to.’
He went on to explain that the company had no choice but to take this action as North Sea gas supplies are decreasing, so Npower is now ‘forced to buy energy on the volatile global wholesale market’.
‘In the UK we have also seen rising distribution and network charges, and further environmental costs but we have still managed to keep our increases lower than those announced by any other major supplier,’ Mr Miles added.
The domino effect
ScottishPower was the first to announce it was hiking its prices, with 19% increases in gas and 10% for electricity bills, which came into effect on 1 August.
British Gas then revealed that, on 18 August, an 18% increase in gas and a 16% rise in electricity prices will take effect.
Scottish and Southern Energy was the next to fold, with its gas prices set to increase by 18% and electricity by 11% on 14 September.
EDF is now the only member of the Big Six to not have announced increases over recent months. The last time it actioned a price hike was in March, when its gas prices went up by 6.5% and electricity by 7.5%.
Switch now
A handy bit of legislation introduced earlier this year means that energy companies have to warn customers at least 30 days before they plan to put up their prices.
This means you still have a bit of time to shop around and see which company offers the best deal for you.
If it’s a dual fuel, fixed rate tariff you’re looking for, you might want to consider EDF Energy’s Fix for 2012, which has with an average annual bill of £1,051. Be warned, though, you will have to pay a cancellation fee of £50 if you leave before 31 December next year.
Alternatively, Npower’s Go Fix 7 tariff costs, on average, £1,127 per year. This also comes with a cancellation fee - £20 for each type of energy.
If you don’t fancy a fixed-term tariff, you could opt for a non-fixed deal. These can be cheaper per month, but you could end up paying more in the long run if the energy companies hike their prices again.
Whichever type of tariff you decide to opt for, have a good search around and read each provider’s small print to make sure you get the cheapest deal for you.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
