Npower becomes latest energy supplier to announce price rises
NPOWER has become the latest energy supplier to up its prices.
It is the third major company to announce price rises, with a dual-fuel bill set to go up 10.4 per cent from December 1.
This is the highest increase announced by any supplier so far.
SSE, parent company of Swalec, will increase prices by 8.2 per cent from November 15 and British Gas has said prices will go up by 9.2 per cent on November 23.
The Npower increase includes an electricity price rise of 9.3 per cent and a gas price rise of 11.1 per cent.
It will affect 3.1 million customers, adding an extra £137 to an annual average dual-fuel bill, taking it to £1,459.
The company said it aimed to make a profit of five pence in the pound, which it regarded as a fair return for delivering energy reliably to people's homes and for the risks it had to take on.
It added that all suppliers faced the same pressures on costs, so there was a "natural tendency" for prices to move at the same time.
"When Tesco puts up the price of a loaf of bread by 5p no-one is surprised if Sainsbury's do the same because they are subject to the same costs. We are clear that the market is competitive," the company is reported as saying.