Paul Massara, chief executive at npower has admitted that 2 million customers will see their standing charge for electricity rise from £36 to £40.
The energy giant added that 1.1 million households would not be affected by the rise as the unit-rate of electricity would be cut to compensate. 900,000 homes will, however, be charged more over the course of the next year.
The price hike is set to cover an already applied electricity discount for customers who stayed with npower over the course of 12 months.
npower chief calls British Gas’s free energy Saturdays a ‘gimmick’
Massara also dismissed British Gas’s plan to offer free energy on Saturdays and told the Telegraph that the plan may confuse customers as weekday rates are likely to be increased.
He said: “We are looking at smart meters but we think at the moment Joe Public is more concerned about understanding their bill and the size of the bill. A ‘Free Saturday’ is more of a gimmick really. People will simply end up paying more during the week to make up for it.”
British Gas’s ‘free Saturday’ plan has already been trailed in the USA and necessitates all participating households to have a smart meter installed. A spokesperson for British Gas announced that the tariff could launch in the UK in mid-2014.
New simpler energy bills unveiled
npower today unveiled a new, simplified layout for its energy bills, which were designed following a consultation with more than 400 customers. The new bills highlight the full amount owed and due date, whilst also providing a more in-depth analysis for customers looking to understand energy spend.
The energy supplier will also reduce the number of tariffs available from seven to four.