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npower increases domestic standard energy prices

 

  • npower announces a 5.3% (£64) increase to an average annual standard variable dual fuel bill(1)
  • Over 60% of customers will NOT see an increase
  • Standard prepayment meter and Safeguard tariff customers are not affected
  • The increase reflects rises in wholesale and policy costs
  • npower offers a range of tariffs including the longest fix on the market and the only accredited green tariff(2) among the large and medium suppliers
  • A dual fuel direct debit customer will typically pay £1,230* a year on the new standard tariff

npower today announces it is increasing a typical dual fuel annual energy bill by an average of 5.3% or £64, across all payment types. This is made up of an average rise of 4.4% on gas and 6.2% on electricity (1)

The new changes will impact approximately 1million of npower’s domestic customers and will come into effect on 17th June.  Over 60% of npower’s total customers will not receive a price increase - these customers may be on fixed term energy deals, have a prepayment meter or be on the Safeguard tariff.

The price change largely stems from increases in policy and wholesale energy costs, which are widely acknowledged to have continued to rise since npower implemented its last price change in March 2017. Ofgem cited the same drivers for its 5.5% increase to the prepayment and Safeguard tariff in April 2018.

npower already has a higher percentage of fixed term tariff customers than most large suppliers and continues to work hard to encourage customers to switch. npower offers a choice of short, medium and long term fixed deals and will be writing to those affected by today’s announcement with details of the best value tariff for them.

npower has also today launched Price Freeze June 2022 exclusively for these customers, which is the longest fix on the market and protects customers from potential rises over the next four years(3).

Simon Stacey, managing director domestic markets, said:

Announcing this price change today isn’t a decision we’ve taken lightly. 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.

“Less than half of our customers are on our standard tariff – one of the lowest levels among the larger energy suppliers.  We continue to encourage all our customers to look at our range of competitive fixed deals and switch to a tariff that best suits their needs - whether that’s our green product or a short, medium deal, or the market’s longest fix.

“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.”

(ENDS)

For further information please contact the npower press office on 0845 070 2807 or go to: npower.com/pricechange

 

Notes to editors:

(1) Averaged across all areas and across Receipt of Bill (5.1%/£64) and Monthly Direct Debit (5.5%/£64) payment methods. Based on Ofgem’s typical domestic consumption value of 12,000kWhs Gas and 3,100kWhs Electricity for a dual fuel customer.

(2) Go Green Energy Fix is accredited by Carbon Clear, a world leading provider of carbon and energy management and sustainability services. After auditing our people, systems and processes involved with Go Green Energy Fix, they’ve given the tariff their stamp of assurance to say it meets its green standards. Go Green Energy Fix meets Ofgem’s standard licensing conditions regarding both renewable energy matching and additionality. Excludes prepayment.

(3) npower’s Price Freeze June 2022 is the longest fixed term tariff on the market, securing prices for the next 4 years at an average bill value of £1,166*.Only available to credit meter customers on our standard variable rates. Prices will be fixed until 30/06/2022 subject to governmental or regulatory requirements. A £20 per fuel early exit fee may apply.


Supplier increases in 2018

Supplier

Announced

% Dual Fuel Change

Increase in £

Ebico

16th Jan

5.4%

£60

Octopus

15th Feb

2.6%

£23

Bulb

27th Feb

2.8%

£24

iSupply

1st Mar

7.5%

£76

E-On

1st Mar

2.6%

£30

Pure Planet

14th Mar

5.6%

£48

Igloo

15th Mar

2.9%

£25

Engie

15th Mar

5.9%

£58

Ecotricity

16th Mar

4.7%

£57

British Gas

10th Apr

5.5%

£60

EDF energy

12th Apr

1.4%

£16

Scottish Power

20th Apr

5.5%

£63

Green Energy

23rd Apr

5.6%

£59

Zebra Energy

25th Apr

13.2%

£133

Orbit Energy

27th Apr

5.6%

£51

OVO

4th May

5.1%

£53

 

 
       

Table based on the  average annual electricity consumption of 3,100kWh and gas consumption of 12,000kWh, on SVT paying by Direct Debit. Costs are averaged across mainland UK

npower’s on-sale products:

New Standard Variable

£1,230* average annual cost for electricity & gas. Annual cost for individual customers will vary and may be higher than our standard charges.

Payment Methods – Direct Debit or Receipt of Bill
No Early Exit Fee

Online Account Management not required

Price Freeze June 2022 (Only available to existing npower customers paying our standard variable rates (for example on our Standard or Juice tariff or if you are on a deemed contract with us)

£1,166* average annual cost for electricity & gas. Annual cost for individual customers will vary and may be higher than our standard charges.
Payment Methods – Direct Debit or Receipt of Bill
Early Exit Fee of £20 per fuel may apply

Online Account Management not required
Saving against new standard = £64

 

Online Price Fix July 2019

£1,071* average annual cost for electricity & gas. Annual cost for individual customers will vary and may be higher than our standard charges.
Payment Methods – Direct Debit or Receipt of Bill
Early Exit Fee of £35 per fuel may apply

Online Account Management required
Saving against new standard = £159

 

Price Fix July 2020

£1,098* average annual cost for electricity & gas. Annual cost for individual customers will vary and may be higher than our standard charges.
Payment Methods – Direct Debit or Receipt of Bill
No Early Exit Fee

Online Account Management not required
Saving against new standard = £132

 

Go Green Energy Fix July 2020

£1,104* average annual cost for electricity & gas. Annual cost for individual customers will vary and may be higher than our standard charges.
Payment Methods – Direct Debit or Receipt of Bill
No Early Exit Fee

Online Account Management required
Saving against new standard = £126

Super Fix June 2021

£1,103* average annual cost for electricity & gas. Annual cost for individual customers will vary and may be higher than our standard charges.
Payment Methods – Direct Debit or Receipt of Bill
Early Exit Fee of £50 per fuel may apply

Online Account Management not required
Saving against new standard = £127

Prices on fixed price tariffs will be fixed subject to governmental or regulatory requirements. Offers subject to availability and may be withdrawn, suspended or amended at any time – full terms and conditions available at npower.com

*How did we calculate this?: The average annual cost is based on standard single rate meter customer with a typical annual average electricity consumption of 3,100kWh and gas consumption of 12,000kWh paying by Direct Debit. Costs are averaged across mainland UK.  Includes the annual value of Direct Debit discounts and VAT at the reduced rate of 5%. Actual annual cost will vary according to the number of fuels taken, the applicability of discounts and by region, consumption, payment method and meter type and charges could be higher than our Standard charges. Correct as at 11/05/18.

Telephone numbers for customers:

npower energy efficiency helpline: 0800 02 22 20**
npower priority services team: 0808 172 6999**
npower customer services: 0800 073 3000**


**Phone calls: We may monitor and/or record calls for security, quality or training purposes. Calling us on an 0800 number should be free from all mobiles and generally free from all landlines. npower is a registered trademark and is the trading name of Npower Limited (Registered No. 3653277), Npower Gas Limited (Registered No. 2999919), Npower Northern Limited (Registered No. 3432100) who also act as an agent for Npower Northern Supply Limited (Registered No. 2845740) for the supply of electricity, Npower Yorkshire Limited (Registered No. 3937808) who also act as an agent for Npower. Yorkshire Supply Limited (Registered No. 4212116) for the supply of electricity. All registered in England and Wales. Registered Offices: Windmill Hill Business Park, Whitehill Way, Swindon, Wiltshire, SN5 6PB.

About npower:

npower (npower Group plc) is one of Britain’s leading energy companies and is part of the innogy SE group.

We serve around 5 million residential and business accounts with electricity and gas (full year 2017).

innogy SE is Germany’s leading energy company, with revenue of around €43 billion (2017), more than 40,000 employees and activities in 16 countries across Europe. With its three business segments Grid & Infrastructure, Retail and Renewables, innogy addresses the requirements of a modern, decarbonised, decentralised and digital energy world. Its activities focus on its 23 million customers, and on offering them innovative and sustainable products and services which enable them to use energy more efficiently and improve their quality of life. The key markets are Germany, UK, Netherlands and Belgium as well as several countries in Central Eastern and South Eastern Europe. For further information about npower please visit npower.com - We are also on twitter - @npowerhq and Youtube.