Npower to raise energy prices by 10.4%

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Npower to raise energy prices by 10.4%

Postby dutchman » Mon Oct 21, 2013 12:54 pm

Energy firm Npower has become the third major supplier to announce price rises, with a dual-fuel bill to go up 10.4%.

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The price rise will take effect on 1 December, and is the highest increase announced by any supplier so far.

SSE will increase prices by 8.2% from 15 November and British Gas said prices would go up by 9.2% on 23 November.

The Npower increase includes an electricity price rise of 9.3% and a gas price rise of 11.1%. The move will affect 3.1 million customers.

The change will add an extra £137 to an annual average dual-fuel bill, taking it to £1,459.

Between August and December last year, the "big six" energy companies outlined price rises of between 6% and 10.8%.

"I know that any increases to household bills are always unwelcome, and this is not a decision that we have taken lightly. We will continue to take steps where we can to reduce the impact of the external influences on energy bills," said Paul Massara, chief executive of Npower.

Npower echoed the view of the other suppliers by saying that the rise was the result of cost increases in delivering energy to homes, fulfilling government schemes and raw materials.

The company said that 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 has to take on.

Clare Francis, of price comparison website Moneysupermarket, said she expected the other major suppliers to follow suit with price rises.

"The domino effect has really kicked in," she said.

But Npower said 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 said.

It also challenged the view that prices shot up when wholesale costs went up but fell slowly after wholesale costs dropped.

Yet, Stephen Fitzpatrick, the founder of Ovo Energy, said that he had not seen any rises in wholesale prices recently. The company, one of the smallest energy suppliers in the UK, put up prices earlier in the year.

:bbc_news:
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Re: Npower to raise energy prices by 10.4%

Postby rebbonk » Mon Oct 21, 2013 12:58 pm

It's an illegal cartel

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Source : BBC
Of course it'll fit; you just need a bigger hammer.
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Re: Npower to raise energy prices by 10.4%

Postby dutchman » Mon Oct 21, 2013 1:36 pm

It makes a mockery of Cameron's claim that changing suppliers saves money. I know people who've changed supplier and ended up paying more.

There's no choice where I live in any case, British Gas are the only ones with access to the meter readings around here.
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Re: Npower to raise energy prices by 10.4%

Postby dutchman » Tue Oct 22, 2013 3:39 pm

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Re: Npower to raise energy prices by 10.4%

Postby rebbonk » Tue Oct 22, 2013 6:46 pm

That graphic is incredibly accurate and apt!
Of course it'll fit; you just need a bigger hammer.
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