Npower to hike energy prices by 15.7 per cent

From October 1, Npower will increase average gas tariffs by 15.7 per cent, while electricity will go up by 7.2 per cent.

That means the average dual fuel customer would see prices rise by 12.2 per cent or £134 a year.

‘Volatile markets’

The fourth largest provider in the UK blamed the rise on higher wholesale prices and a commitment to invest in future energy supplies.

Npower is the fifth of the main providers to announce a price hike, following Scottish and Southern Energy, Scottish Power, British Gas and E.ON.

Chief commercial officer, Kevin Miles, said the higher prices were unavoidable due to “volatile” markets.

“I know it hurts everyone when we put up prices and I wish we didn’t have to.

With reduced quantities of North Sea gas, we are now forced to buy energy on the volatile global wholesale market. World events have pushed up prices. Kevin Miles, Npower chief commercial officer

“With reduced quantities of North Sea gas, we are now forced to buy energy on the volatile global wholesale market.

“World events have pushed up prices and we believe this trend will continue,” he said.

The price hike comes as many households across the UK face rising household prices and slowing wage growth.

Read more from Channel 4 News on energy prices

‘No surprise’

Adam Scorer, director of external affairs at independent lobby group Consumer Focus, said Npower’s customers will have been “dreading this announcement”.

“It will not come as a surprise, but it will be a source of great frustration when profits are up.

“It is welcome that these increases are lower than the rest of the big six but they will still be hard to swallow for hard-pressed consumers,” he said.

Inflationary pressures

Figures out today show inflation for July increased to 4.4 per cent from 4.2 per cent in June.

Earlier this month E.ON announced its utility prices would go up from September, with electricity tariffs rising by 11.4 per cent and gas by 18.1 per cent.