Energy giant nPower is the latest to announce gas and electricity price hikes. Dual fuel customers will see prices rise of 12.2 per cent, adding £136 to annual bills on average.
Single fuel customers will see the price of gas rise by 15.7 per cent and electricity by 7.2 per cent from 1 October.
Npower has 6.5 million residential gas and electricity customers throughout the UK and is the fifth of the Big Six energy firms to announce gas and electricity price increases this summer.
Scottish Power, British Gas, Scottish and Southern Energy, and E.ON have all announced price hikes in recent weeks.
Energy giants blame “world events” for hikes
The energy firm blamed an increase in the cost of wholesale gas – the amount it pays for energy – for the latest customer price hikes.
Kevin Miles, chief commercial officer, at nPower said: “I know it hurts everyone when we put up prices and I wish we didn’t have to.
“Although our half year profits were better than last year, they do not begin to match the billions we are investing in energy for the future.
“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. In the UK we have also seen rising distribution and network charges, and further environmental costs but we have still managed to keep our increases lower than those announced by any other major supplier.”
But watchdog Consumer Focus says that despite recent rises, wholesale prices remain around a third lower than at their 2008 peak.
EDF Energy is the last of the Big Six yet to announce price hikes for their customers.
Smaller firms cheaper than Big Six
There are around 13 smaller energy firms in the UK supplying gas and electricity and when it comes to price, they are competing with their bigger rivals.
Co-operative Energy and OVO Energy currently top the best buy table for all suppliers offering dual fuel tariffs.
The small energy suppliers make up five of the top six firms offering the cheapest prices.
The only Big Six firm to grace the top half of the table is EDF Energy, the remaining Big Six firm yet to announce price rises.
Average UK bill for standard dual fuel tariff for a medium user paying by direct debit as at 16 August
| Supplier | Average UK dual fuel bill |
|---|
| Co-operative |
£1,023 |
| OVO Energy |
£1,050 |
| EDF Energy |
£1,051 |
| Spark |
£1,061 |
| Utility Warehouse (Telecom Plus) |
£1,068 |
| EBICo |
£1,100 |
| nPower (after 1 Oct rise) |
£1,188 |
| E.ON |
£1,190 |
| Scottish Power |
£1,190 |
| M&S Energy |
£1,200 |
| Scottish and Southern |
£1,200 |
| British Gas |
£1,286 |
| Utilita |
£1,328 |
| Good Energy |
£1,350 |
Lisa Greenfield, energy analyst at Confused.com says: "The rise will be effective when consumers need their cash the most, just in time to start their Christmas shopping.
"While nPower's rise is the lowest of the Big Six so far, this isn’t something to shout about, especially since smaller suppliers like Good Energy and OVO Energy have managed much smaller increases. The launch of nPower's new fixed rate tariff is going to do little to placate consumers struggling with their finances.”
*Energy regulator Ofgem defines a medium user as using 16,500 units of gas and 3,300 units of electricity a year.
