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npower: profits up following price hike

  • npower’s parent company, RWE, reports a 10% increase in Group EBITDA and a 34% increase in UK operating results for 2012

  • npower hiked its prices last November (26th) by 8.8% for gas and 9.1% for electricity – pushing its average dual fuel bill up £108 from £1,244 to £1,352 a year

  • At the time of increasing its prices, npower blamed external factors, such as Government policy, for driving up costs

  • Uswitch.com is calling on npower to help UK consumers by cutting its prices again.

Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “These profits will make customers wonder exactly why npower had to hit them with a hefty price hike this winter. It’s a valid question and npower customers deserve a valid answer, especially those who were forced to go cold this winter for fear of the cost of heating their home.

“Just as we are telling the Government that affordability has to be at the heart of energy policy, we would also remind the energy companies themselves that being strong and financially secure is just part of the picture – there has to be a balance between healthy profits and people being forced to go cold. Investing in the UK is hugely welcome, but so is taking every step possible to help keep its citizens warm. In light of today’s announcement we would urge npower to cut its prices again.

“In the meantime, consumers should help themselves too. There are two steps that everyone should now take to protect themselves from the high cost of energy – use less energy by making homes more energy efficient and pay less for what you do use by moving to a more competitive plan. There is currently almost £250 difference between the cheapest and most expensive tariffs on the market – households can easily achieve a valuable saving just by moving to dual fuel, paying by direct debit and signing up to a competitively priced deal.”

npower average annual household energy bill:

|

Date

|

Annual Bill Size

|

Jan 2004

|

£521

| |

Jan 2005

|

£606

| |

Jan 2006

|

£606

| |

Jan 2007

|

£924

| |

Jan 2008

|

£828

| |

Jan 2009

|

£1,186

| |

Jan 2010

|

£1,150

| |

Jan 2011

|

£1,095

| |

Jan 2012

|

£1,282

| |

Jan 2013

|

£1,352

|

Source: Uswitch.com

Annual bill sizes based on a medium user profile on a standard plan. Customers using 3,300 kWh and 16,500 kWh gas, paying on receipt of bill with bill sizes averaged across all regions.

FOR MORE INFORMATION

Jo Ganly

Phone: 020 7148 4662

Email: jo.ganly@uswitch.com

Twitter: @UswitchPR

Notes to editors

  1. RWE AG announcement issued Tuesday 5th March, 2013.

  2. http://www.npowermediacentre.com/Press-Releases/npower-announces-changes-to-gas-and-electricity-prices-11b5.aspx; “Paul Massara, chief commercial officer said: “There is never a good time to increase energy bills, particularly when so many people are working hard to make ends meet. But the costs of new statutory schemes, increases in distribution charges and the price of gas for the coming winter are all being driven up by external factors, for example government policy….”

  3. Based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas, on an npower standard dual fuel plan, paying quarterly by cash or cheque with bill sizes averaged across all regions.

  4. Based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas – E.ON’s standard cash and cheque price from 18th January, 2013 is £1,370 a year on average while SSE’s Discount Energy Bonus May 2014 (with paperless billing) costs £1,134 a year on average – a saving of £236 a year.

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