Npower to hike energy bills for 1MILLION customers by £64 a year – here’s how to beat it
ONE million of Npower customers face paying up to £64 more a year for their gas and electricity bills.
The energy provider said it needed to put up bills due to a rise in wholesale costs and Government taxes.
The price hike is made up of an average rise of 4.4 per cent on gas and 6.2 per cent on electricity, the energy firm said.
The increase is set to affect one customers paying Npower standard variable tariff. They will see their bills rise to £1,230, from £1,166 from June 17 - although they can switch to a cheaper deal to avoid it.
Customers which are on fixed term energy deals, on safeguard tariffs or who have a prepayment meter will not be affected by the price hike.
Simon Stacey, from Npower, said the decision to increase prices was not “taken lightly”.
How to switch suppliers and save £300
How to switch suppliers and save £300 SWITCHING suppliers is the best way you can cut your energy bills. But recent research from MoneySuperMarket found that households are throwing away up to £300 a year by not bothering. Here's what you need to do.
1. Shop around - If you're on an expensive Standard Variable Tariff (SVT) deal you are throwing away up to £300 a year. Use a comparison site like MoneySuperMarket.com or EnergyHelpline.com to see what best deals are available to you.
The cheapest deals are usually found online and are fixed deals - meaning you'll pay a fixed amount usually for 12 months.
2. Switch - When you've found one, all you have to do is contact the new supplier.
It helps to have the following information to hand - which you can find on your bill - to give the new supplier:
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you pay
- An up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won't be interrupted in that time.
For more advice read our guide on how to switch.
He added: "The costs all large and medium energy suppliers are facing - particularly wholesale and policy costs which are largely outside our control - have unfortunately been on the rise for some time and we need to reflect these in our prices.
"While existing customers who are currently on a fixed deal, have a prepayment meter or on the Safeguard tariff are protected from these increases, we encourage any customer who is struggling with their energy bills to contact us."
Commenting on the news, Claire Osborne, an energy expert from uSwitch.com energy expert, said: “Npower has reclaimed its top spot as the most expensive big six standard tariff.
"The average £64 rise is the equivalent of almost three weeks spending on energy. Npower customers have a simple choice to make: stay on a rip-off tariff and watch their bank balance shrink even further, or compare, switch and save up to £491.
"With the recent wholesale cost increases, now is the time to switch and lock in a fixed deal to protect yourself against future price rises."
It's the fourth of the Big Six energy firms to push up costs this year.
In April, British Gas announced that 4.1 million of its customers will pay up to £60 more a year for their gas and electricity bills, while EDF has said prices will rise by £16 a year, from June 7.
Scottish Power is also hiking its prices by 5.5 per cent adding £63 onto bills from June 1.
Writing in the Sun in February PM Theresa May said the price cap on expensive Standard Variable Tariffs should be ready by December this year.
The cap will run until at least 2020 - but there are fears the cap will actually push up prices instead.
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Npower is currently in talks with SSE about a possible tie-up which would create a company with around 11.5 million customers making it the second-biggest UK energy supplier behind British Gas.
The planned merger was referred for a full investigation by the Competition and Markets Authority (CMA) amid fears it could push up energy costs for customers.
A decision on the merger will now be made by an independent panel supported by the CMA. The deadline for the final report is 22 October.
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