Prices for npower customers will go up by 7.8% in 2014. Having raised prices by 10.4% in December, the provider has since reduced the rise to 7.8% due to government-led cuts to green levies
In October, npower announced a 10.4% increase for the average dual-fuel npower customer — or roughly £139 more per year.
In December, the government stated it would reduce green levies — a move that they expected would prompt suppliers to pass along the savings (roughtly £52) to energy consumers. npower was the last of the big six to announce their price rise reduction, and came under fire for waiting so long to not only announce but implement the reduction (effective 28 February).
npower also came out as the big six supplier that raised its prices the most in 2013-2014 season, and had the smallest reduction to this rise — in the end, customers will see a total price rise of 7.8%.
To read more about this supplier, including full price history, customer satisfaction scores and where their average bill cost ranks among other gas and electricity suppliers, view uSwitch's npower supplier page.
What uSwitch said about npower's price rise
Ann Robinson, director of consumer policy at uSwitch, lamented the rise but pointed out that consumers do not have to sit idly by, waiting for politicians to sort out a solution:
“With three of the big six energy suppliers hiking their prices, consumers will be going into winter with heavy hearts and lighter wallets. The fear is that even more will feel forced to turn down and switch off in an attempt to keep their energy bills under control. This type of sacrifice is unpalatable at the best of times, but intolerable if we experience a real winter freeze.
“It’s not worth waiting for the politicians – rhetoric and hot air won’t keep you warm this winter. If you want to protect yourself then the time for action is now. There are some great fixed price deals on the market which can protect you from price hikes for anything up to four winters."
"Now is also the time to reduce the amount of energy you use – not by going cold, but by making your home as energy efficient as possible. These two steps could be enough to keep your bills affordable and your home still warm.”
What npower say about the price rise
The CEO of npower, Paul Massara, said of the price rise: “I know that any increases to household bills are always unwelcome, and this is not a decision that we have taken lightly. We will continue to take steps where we can to reduce the impact of the external influences on energy bills.
“We only aim to make around 5 pence in every pound in our retail business which we feel is a fair return for delivering reliable energy to consumers and for the risks that we bear."
What you can do about price rises
Consumers worried about these or any future price rises can opt to fix their energy rates with a fixed price plan.These types of plans lock in the rate for gas and/or electricity for up three winters.
If you do not wish to commit to a fixed price plan, you can still run an energy comparison to find a cheaper energy plan.