npower adds to energy price rise misery

Cash-strapped consumers face more price rise misery with npower today announcing that it is putting its prices up by 5% or £43 for gas and 5% or £22 for electricity from 4th January 2011. The increase will affect 6.2 million customers. It will add an extra £65 on to the average annual npower standard dual fuel bill, which will increase from £1,196 to £1,261 as a result.

It is the fourth major supplier to announce a full price hike in 2010. ScottishPower's increase took effect on 25th November, with SSE's hike kicking-in on the 1st December followed by British Gas on the 10th December. EDF Energy has announced a price freeze on standard tariffs until March next year leaving just E.ON yet to reveal its hand to customers. 

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "This is the tipping point with four of the six major energy suppliers having now chosen to hike their prices this winter. The majority of households will now be hit hard at a time of year when many struggle to meet their bills anyway. The herd mentality has kicked in and the need for affordable energy through the cold winter months has been trampled underfoot in the stampede to raise prices. This is a bitter blow to consumers.

"Of the big six suppliers just EDF Energy has broken ranks while E.ON is yet to reveal its hand. But there is a glimmer of hope that wholesale prices, which are only around 50% of the level they reached at a peak in 2008, will fall again in the Spring. If this happens consumers have every right to expect those suppliers who have been so quick to put their prices up to be just as swift in cutting their prices back down again. 

"In a time of pricing uncertainty it's important that consumers take action. For those who want to protect themselves from any future price rises there are some competitive fixed price energy plans available that will offer peace of mind. For those who simply want to pay the lowest possible price for their energy then it's time to look at suppliers' online energy plans which are consistently the most competitive in the market. The difference between the cheapest energy plan in the market, which is npower's Sign Online 20, and the most expensive standard plan is £405 - this is a substantial saving and could make a real difference for those who are worried or struggling with bills."