Hike in energy prices gaining attention
- Category: News
Bills on the up!
Npower has announced that its raising its standard energy prices by an average of 9.8% – and it's received huge amounts of criticism as a result.
The 9.8% increase is made up of a 4.8% rise to gas prices and a whopping 15% increase to electricity prices, which means the typical dual fuel bill will rise by an average of £109. The new charges are set to come into effect on 16 March and are expected to impact half of the firm's 2.8m customers, with pre-payment customers and those on fixed rate tariffs not affected.
Unsurprisingly, such a huge increase hasn't gone unnoticed, with the dramatic hike in electricity prices gaining particular attention. The firm says that this is the first time it's increased rates since October 2013, blaming the rise on increased wholesale energy costs and the cost of delivering various Government policies, but that certainly won't placate the 1.4m people who are set to feel the impact on their budgets.
Customers who have been identified as being particularly vulnerable won't face the price increase until May. Npower have revealed the launch of a new tariff to encourage more engagement. The new deal is a four-year tariff that will be offered at a 4.8% discount with no exit fee, and is exclusive to current customers, to encourage them to switch from their standard tariff onto a fixed rate. This will hopefully mean that said customers can avoid being hit with such a rate hike, but the fact that npower is raising prices so much to begin with is attracting serious criticism.
As a homeowner now would be a good time to check your house is energy efficient as experts don’t think this will be an end to prices being hiked. Brexit talks are looming and the pound is still weak, this is a recipe for increased energy prices so do check out the energy saving measures on this site to see if you qualify for assistance. You may be pleasantly surprised to find you are entitled to a service free of charge, so get checking straight away.