npower’s 10.4% or £139 gas and electricity price rise comes into effect this Sunday (1st December)
Average household bill for a dual fuel npower customer will increase from £1,352 to £1,491 a year – when bills hit £1,500 a year almost four in ten households (36%) will be forced to go without heating
However, npower has said that it will cut its price rise to 6% if the Government does move to reduce green levies
Uswitch.com is calling on the Government to be clear and precise in what cuts it is expecting and for energy suppliers to pass them on in full across all tariffs.
On Sunday (1st December) npower will become the third energy supplier to increase its prices. The 10.4% or £139 hike on gas and electricity will drive its average standard dual fuel bill up from £1,352 to £1,491 a year. This is less than £10 away from the £1,500 tipping point at which almost four in ten households (36%) will be forced to turn their heating off entirely.
However, the pain may be short-lived as expectations are that the Government will review green levies as part of the Autumn Statement. npower has said that will cut its price hike to 6% if the Government does move to slash these additional costs on household bills. EDF Energy has already factored the potential reduction into its recently announced price rise. E.ON is the only supplier not to have announced a winter price hike as yet.
Even before the most recent price rises were announced, over eight in ten households (83%) said that they would be rationing their energy use this winter to keep their bills down. Last winter, almost seven in ten households (69%) went without heating at some point to keep their energy costs down – over a third (35%) said that cutting back on their energy use was affecting their quality of life or health.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “Each successive price hike is taking us a step closer to hitting an affordability ceiling. When energy bills hit £1,500 a year almost four in ten households (36%) will be forced to turn their heating off entirely, which has serious implications for quality of life and health.
“With affordability at crisis point, any reduction to bills will be welcome. But to ensure that all households feel the benefit I would urge the Government to be clear and precise in what cuts it is expecting. There can be no room for misinterpretation or manoeuvre. And I would urge suppliers to step up to the plate by passing the cuts on in full and across all tariffs. This will be vital if we are to keep confidence in the market growing.
“However, there’s no reason why consumers should rely on the Government alone to help reduce bills. Even a £50 or £75 reduction in levies will still leave the majority facing a higher bill this winter. Consumers can protect themselves by making sure they are on a competitive tariff and using energy efficiency measures to reduce the amount of energy they use. These two steps will help to protect you this winter and for many more to come.”
|
British Gas
|
£543
|
£1,340
|
£1,471
| |
EDF Energy
|
£504
|
£1,332
|
£1,384
| |
E.ON**
|
£516
|
£1,370
|
£1,370
| |
npower
|
£521
|
£1,352
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£1,491
| |
ScottishPower
|
£524
|
£1,368
|
£1,480
| |
SSE
|
£525
|
£1,354
|
£1,460
| |
Average
|
£522
|
£1,353
|
£1,443
|
npower announcement: Monday 21st October, 2013.
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.
Research carried out in September 2011 with the Uswitch.com Consumer Opinion Panel amongst 2,295 adults with bill paying responsibility for gas and electricity in their household. The £1,500 affordability tipping point is the point at which there is a marked difference in consumer behaviour. This is based on responses to the following question: ‘Following recent price increases, the average household energy bill is now over £1,200 a year. How much would your yearly energy bill have to be before you would consider the following actions….’)
Research was conducted with the Uswitch.com Consumer Opinion Panel in September 2013 amongst 1,250 adults with bill paying responsibility for their household energy. In response to: ‘Are you planning to cut back on the amount of energy you use this winter to make your bills cheaper?’ 51.3% said ‘I am already doing this’ and 31.2% said ‘Yes, I am planning to’. This adds up to 82.5%.
Research conducted with the Uswitch.com Opinion Panel amongst 2,099 respondents in January 2013. In response to: ‘Have you gone without heating this winter to keep energy costs down?’ 31.2% said never, 50.6% said occasionally, 16.5% said regularly and 1.7% said always. This adds up to 68.8% who went without heating at some point.
Research conducted with the Uswitch.com Opinion Panel amongst 2,099 respondents in January 2013. In response to: ‘Do you think you’re achieving the right balance this winter between keeping your home warm and managing costs?’ 34.9% said ‘No – the cut backs I’m making are affecting my quality of life and/or health’.
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