npower price increase comment…..last chance to get a cheap fix?

  • 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.

Wholesale Prices August 2011

Wholesale Prices August 2011


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.
Wholesale Prices Graph August 2011

Wholesale Prices Graph August 2011

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.

Standard Energy Bills Analysis August 2011

Standard Energy Bills Analysis August 2011

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