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npower refuses to rule out winter price rise

Following the announcement of a 3% drop in operating profits, the energy supplier says it is ‘continuously’ considering raising prices

npower logo largeThe German owned energy supplier has not ruled out implementing a price increase in the UK before Christmas although it did underline that no decision had been made.

The comments follow the company’s unveiling of its half-year profits, which showed a fall of 3% in its operating result. Profits from its domestic supply division were down 12%.

Despite these measures, the company did manage to mitigate costs due to higher than usual demand for gas and cost cutting initiatives.

A dip in profits and higher bills

The energy supplier blamed the figures on government energy efficiency schemes, higher network charges and costs associated with reducing the number of tariffs on offer.

npower recently issued a report stating that the average bill would rise from £1,247 to £1,487 by 2020 as a result of expensive green initiatives.

Greg Barker, minister for energy has since rubbished the claims and stated that rising gas prices would be the main cause for price increases.

Job losses on the horizon

npower, which supplies roughly 13% of the UK market, also announced plans to reduce its offices from 26 to 10 over the next five years.

The scheme is part of a restructuring process expected to “reduce costs and improve customer service”.

Paul Massara, chief executive at npower said the company would “avoid compulsory redundancies, wherever possible” but added that the supplier needed to enforce a number of “difficult” changes.

A spokesperson for the company told the Telegraph he did not know how many jobs would be lost.

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