npower are now the fifth of the “big six” energy suppliers to put up their prices of gas and electricity since June. They have cited the “volatile global wholesale market” as the reason for the rise. npower’s millions of customers are facing a higher cost of living after the increase.
The German owned company are putting up their gas prices by an average of 15.7% and electricity prices by 7.2%. these changes will come into effect on October 1st. For npower’s 6.5 million customers, the average energy bill will be £1,188 per annum. This is an average increase of £134 for each year.
Chief commercial officer at RWE npower, Kevin Miles, said “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 and we believe this trend will continue.”
Five of “the big six” have raised prices
Other energy providers to have already raised their gas and electricity prices are British Gas, Scottish & Southern Energy, Scottish Power and E.ON. The contributing factors to these price increases have been named as wholesale price increases, Germany’s nuclear shutdown, the Arab spring uprising, and the nuclear catastrophe in Japan.
So far EDF is the only provider part of the group known as “the big six” to have yet to put their prices up. As EDF is the provider for 99% of households in Britain it is hoped that this will remain to be the case.
Tariffs have been raised by 10% on gas and 19% on electricity by npower’s rivals. Miles is quick to make it clear that the amount npower has raised its prices by is substantially lower than these raises.
Although the typical household bill for fuel is at the highest is higher than ever before, wholesale prices are lower by a third than they were in 2008.
Miles said “Although our half year profits were better than last year, they do not begin to match the billions of pounds we are investing in energy for the future.”