Bill hike for npower customers
Bill hike for npower customers
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Friday, 10, Mar 2006 04:54
Gas and electricity provider npower has become the latest energy firm to announce price increases for domestic UK customers as a result of soaring wholesale prices.
The supplier announced today that it was raising domestic electricity prices by 13.4 per cent and gas prices by 15 per cent, with the increases coming into effect from March 31st.
The price hike represents the second increase by npower so far this year, having previously raised bills on January 1st, and means that, from next month, its six million UK customers will be paying almost 30 per cent more than they were last year.
Kevin Miles, managing director of npower residential, insisted that the price increases were necessary to cover record wholesale gas costs, which have risen by 63 per cent since the new year.
"These changes follow massive increases in the cost of wholesale gas which has trebled in price since 2003," Mr Miles said.
"We delayed our price increases for as long as possible, and as a direct result, npower customers have saved £50 on average compared to British Gas customers over the winter."
He added that the energy firm planned to spend £120 million on energy efficiency schemes for "vulnerable" households.
However, crucially, he failed to rule out further price increases during the remainder of 2006.
Last month, British Gas announced that it was raising its domestic prices by 22 per cent, but pledged that it would not sanction a further price hike this year.
The UK's major energy suppliers have all raised their prices at least once so far in 2006 as a result of rising wholesale costs.
Old age charity Help the Aged has warned that more than 400,000 eldery people may be put at risk by rising energy bills.
"Help the Aged is very concerned about the effects that any price rise will have on older people," said the charity's head of public affairs, Mervyn Kohler.
"An extra 200,000 older people are pushed into fuel poverty when a ten per cent increase occurs, so [price rises] will have a wide effect on vulnerable pensioners."
He added: "No older person should have to make the choice between heating and eating."