- 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|
|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.