Press release:

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%[1] for 1 million npower[2] customers on its standard variable tariff from 1 April
  • npower’s standard plan will cost £1,254 on average[1] – adding £118 million to bills across the country[3]
  • Prepayment meter customers will also face a £106 (9%) price rise[1]
  • npower announcement takes confirmed bill increases to £490 million[4] 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[4], 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[5] 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.

— ends —

Notes to editors

  1. Source: uSwitch.com
  2. Source: Ofgem – number of non-price protected domestic customer accounts, July 2018
  3. npower had 1,011,603 customers as of July 2018 x £117 = £118,357,551
  4. See Table 1 in body of release
  5. Cheapest deal as of 13 February 2019 is £960. £1,254 – £960 = £294

About us

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