23/Jul/2014 - Last News Update: 22:44

Npower to raise gas and electricity prices by 5%

Category: Business

Published: 10th Dec 2010 13:00:02

Customers of energy company Npower will see their gas and electricity bills rise by 5% from 4 January.

The change will mean the typical dual-fuel customer with Npower will see their annual bill rise by £54, the firm said.

The announcement comes on the day that British Gas customers started paying more for their energy.

Meanwhile, E.On said it was still monitoring the market but would not raise prices before January.

Npower, which said it would leave its social tariff for vulnerable customers unchanged until April 2011, blamed a 50% rise in wholesale prices in the past 12 months for the increase - its first for domestic customers in two years.

"When wholesale costs are driving prices up it is a good time to review the way you manage your energy," said Kevin Miles, chief executive of Npower retail.

The move is the latest in a string of price rise announcements made by the major energy suppliers in the UK.

In the last week of November, Scottish Power increased electricity bills by an average of 8.9% and prices for gas customers increased by an average of 2%.

Scottish and Southern Energy followed by putting up its domestic gas tariffs by 9.4% at the start of December. The 7% rise in gas and electricity bills for British Gas customers has now also kicked in.

EDF Energy said that it was keeping its prices on hold during the winter, with no change before March 2011.

E.On said it was monitoring the wholesale markets before making any decision, but would not raise prices before January.

Earlier this week, the bosses of five of the big six energy companies told a committee of MPs that bills were likely to rise in years to come.

They told the Energy Committee that the "inevitable direction of wholesale prices" meant domestic bills would get more expensive over the next decade.

Prices quoted when bills are changed are an average for customers across the UK. However, issues such as transportation costs mean a different amount can be charged depending on where customers live.

Figures from watchdog Consumer Focus show that people in different parts of the UK - with the same energy supplier - have bills that vary by up to £59 a year.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2010. Npower to raise gas and electricity prices by 5% [Online] (Updated 10th Dec 2010)
Available at: http://www.ukwirednews.com/news/114687/Npower-to-raise-gas-and-electricity-prices-by-5 [Accessed 23rd Jul 2014]

News In Other Categories

  • Bad taste lingers over China's latest food scandal

    Wang Fang didn't work for the Shanghai Husi Food Company for long.
  • Appnovation creating 25 new jobs in Caerphilly

    A Canadian IT services company is creating 25 jobs in Caerphilly.
  • Celtic to face Legia Warsaw in Champions League qualifying

    Celtic will play Legia Warsaw in the third round of Champions League qualifying after the Polish side beat St Patrick's Athletic 5-0 for a 6-1 aggregate win.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Glasgow 2014: Commonwealth Games begin at Celtic Park

    Last-minute preparations are underway for the 2014 Commonwealth Games opening ceremony at Celtic Park in Glasgow.
  • Facebook reports 138% surge in profits

    Facebook has announced a 138% rise in net income for the second quarter to $791m (£464m).