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npower changes domestic standard energy prices impacting around 50% of customers.

  • First increase since October 2013

  • Around 50% of customers will NOT see an increase

  • Existing standard customers will be exclusively offered 4 year fixed tariff at 4.8% discount with no exit fee(1)

  • Impact on vulnerable customers delayed until May, PPM customers not affected


npower today announced that for the first time since October 2013 it is to increase a typical dual fuel annual energy bill by on average 9.8% or £109. This is made up of an average increase of 4.8% on gas and 15% on electricity (2)

The new charges will come into effect on 16th March and will impact approximately 50% (1.4m) of npower’s customers.  Half (1.4m) will not receive a price increase. This is because npower has a higher percentage of fixed-rate tariff customers than most large suppliers, and because pre-payment customers are not affected.  npower is also launching an exclusive four year fixed term tariff for our current standard customers, where the exit fee has been waived in recognition for their loyalty.

Today’s increase includes a change to npower’s standing charge of £55 for electricity, bringing it  in-line with the rest of the market. 

Since npower last raised its prices three years ago, there have been increases in wholesale energy costs and rises in the cost of delivering Government policies, such as smart metering, renewables obligation and the capacity market.  This trend is set to continue, with network and policy costs representing an increasing share of domestic electricity bills.   

To provide certainty around future energy bills, fixed tariffs can provide reassurance for existing and new customers. npower offers a range of fixed products to suit varying customer needs. These range from short and medium term fixed tariffs to the longest fix on the market, which fixes energy prices until 2021, with Super Fix March 2021.

Simon Stacey, managing director domestic markets, said:

This is a hugely difficult decision, and we’ve delayed the date this takes effect until after the coldest months of the year. We’ve also made sure that our most vulnerable customers won’t see any impact until May(3).   

 “npower has some of the most engaged customers of any major supplier - one million of our customers switched to another of our tariffs last year and around half of our customers aren’t on a standard variable tariff (SVT). To encourage even more engagement, today we’re launching a fixed tariff just for our existing customers who are still on an SVT, that will fix energy prices for the next four years with no exit fees.”

 npower operates one of the broadest range of support schemes of any supplier, offering the widest and most diverse care programmes for vulnerable customers and those who are struggling with their energy bills.  We’re already delaying the impact of the increase for vulnerable customers, but anyone who is struggling with their energy bills should contact us straight away to discuss whether they’re on the right tariff for their needs, energy saving help and bespoke payment plans.”

(ENDS)

Useful information / Telephone Numbers for customers:

npower.com/pricechange
npower Energy Efficiency Helpline: 0800 02 22 20
npower Priority Services Team: 0808 172 6999
npower customer services: 0800 073 3000

For further information please contact the npower press office on 0845 070 2807

Notes to Editors

  1. Compares npower’s Price Fix March 2021 with npower's  new Standard electricity and gas charges (effective 16/03/17) on an annual basis. Averaged across the country for a Direct Debit dual fuel customer with a standard single rate meter and typical annual electricity consumption of 3,100 kWh and gas consumption of 12,500kWh. Actual comparison to our Standard charges will vary according to the fuel(s) taken, consumption, meter type and any regional variation in tariff rates.

  2. Averaged across all areas and across Receipt of Bill and Monthly Direct Debit payment methods. Based on Ofgem’s typical domestic consumption value of 12,500kWhs Gas and 3,100kWhs Electricity for a dual fuel customer.

     

  3. Approximately 80,000 Warm Home discount customers will receive a rebate equivalent to two months of energy use based on Ofgem’s Typical Domestic Consumption value of 12,500kWhs Gas and 3,100kWhs Electricity.