- Electricity prices increased by 7%, gas prices increased by 16%.
- Standard energy bills will increase by £134 from 1 October 2011.
- Standard prices will be 10% higher than their previous record in 2008.
npower today (16 August 2011) became the fifth of the Big 6 to announce inflation busting price increases. Effective 1 October 2011, npower will increase electricity prices by an average 7.2% and gas prices by 16%. The increase will see an npower customer on a standard tariff paying by monthly direct debit pay an extra £134 a year. This will take npower’s standard energy prices to a level 10% higher than they were at their previous peak in late 2008.
The increase is the lowest of the Big 6 to have announced so far. Its Standard tariff will undercut British Gas’ standard prices by 2.5% (£31).
npower appears to have benefitted from recent falls in wholesale energy prices. According to figures from energy price comparison website TheEnergyShop, oil prices have fallen by 14% over the past 3 months with wholesale gas and electricity prices down by 8% from their recent highs.
What we think:
Another day and more bad news for consumers. With five of the Big 6 now having gone it is just a matter of time before EDF Energy completes this round of increases. As such, this really is the very last chance to get a discounted fixed deal out to 2014.
Customers switching to a fixed price deal out to 2014 can save themselves about £120 a year, which amounts to over £300 over the lifetime of the fix. The time to get this deal is now rapidly running out.