npower is third Big Six energy supplier in three days to raise prices to new cap level
Gas and electricity bills will rise by 10% for 1 million npower customers on its standard variable tariff from 1 April
npower’s standard plan will cost £1,254 on average – adding £118 million to bills across the country
Prepayment meter customers will also face a £106 (9%) price rise
npower announcement takes confirmed bill increases to £490 million with more suppliers expected to hike tariffs soon
Uswitch urges consumers to beat the cap trap by switching
Rik Smith, energy expert at Uswitch.com, said: “It’s third time unlucky for energy customers as another of the Big Six suppliers has announced it will be pricing up to the new cap level.
“These announcements are coming like clockwork, shattering the myth that the cap is guaranteeing a good deal for customers on standard tariffs.
“It’s vital that households don’t fall for the price cap con. Since Ofgem announced last week that the level of the cap was going up, over four million customers have already been handed a £490 million confirmed bill increase, kicking in on 1 April. Unfortunately this number is only going to get bigger.
“But consumers can escape the cap trap by acting now. npower’s standard tariff will be £294 more expensive than the cheapest deal on the market today. The savings are real, but the idea that you’re better off under the cap rather than switching is a complete fallacy.”
Table 1: Big Six price increases since cap level increase announced
| Supplier | Tariff name | Old SVT price | New SVT price | Customers affected | Cumulative price increase | ||
|---|---|---|---|---|---|---|---|
| E.ON | E.ON energy plan | £1,137 | £1,254 | 1.8 million | £210 million | ||
| EDF Energy | Standard (Variable) | £1,136 | £1,254 | 1.3 million | £160 million | ||
| npower | Standard | £1,137 | £1,254 | 1 million | £118 million |
Source: Uswitch.com. Correct as of 13 February 2019
Ofgem: number of non-price protected customer accounts, July 2018
Table 2: Ten cheapest deals available
| supplier | plan | type | end date | green | exit fee (£) | average price (£) | ||
|---|---|---|---|---|---|---|---|---|
| Utility Point | Just Up 19 Wk7 Direct | fixed | 18m | N | 60 | 960 | ||
| People’s Energy | People’s Year Fixed (2 Months Upfront) | fixed | 12m | Y | 40 | 968 | ||
| Orbit Energy | 10%OFF4LIFE | variable | 0m | N | 0 | 974 | ||
| iSupplyEnergy | Discover Green 12 months Direct v4 | fixed | 12m | Y | 60 | 985 | ||
| Pure Planet | 100% Green | variable | Y | 0 | 986 | |||
| So Energy | So Rhino – Green | fixed | 12m | Y | 10 | 987 | ||
| Avro Energy | Simple and WinterFix | fixed | 12m | N | 0 | 987 | ||
| Lumo | App Only Fixed v17 | fixed | 12m | N | 60 | 988 | ||
| Octopus Energy | Uswitch Exclusive Octopus 12M Fixed | fixed | 12m | Y | 0 | 998 | ||
| Tonik Energy | Go Green (19 months) | fixed | 19m | Y | 0 | 1006 |
Source: Uswitch.com. Correct as of 13 February 2019.
FOR MORE INFORMATION
Tim Dunford
Phone: 020 3872 5612
Mobile: 07785 552666
Email: tim.dunford@uswitch.com
Twitter: @uswitchPR
Notes to editors
Source: Uswitch.com
Source: Ofgem - number of non-price protected domestic customer accounts, July 2018
npower had 1,011,603 customers as of July 2018 x £117 = £118,357,551
See Table 1 in body of release
Cheapest deal as of 13 February 2019 is £960. £1,254 - £960 = £294
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