Energy News

Npower to hike online energy prices

Wednesday, 5 May 2010

By Garnet Roach garnet@consumerchoices.co.uk

Customers signed up to some of Npower’s online energy tariffs could face price increases of up to 24%, it has been warned.

The Online 8-14 and Web 14 customers will all see price hikes from 7 May, caused by a change in regulator Ofgem’s rules, Npower has said.

It has not yet revealed the new prices for affected customers, though it’s expected that prices will be similar to its standard tariff. Npower said that any affected customers would have been informed by letter.

The energy company said the new rules, requiring energy providers’ prices to reflect the cost of supplying gas and electricity, had forced Npower to put prices up.

However, Ofgem said that the rules were designed to prevent high charges for pre-payment meter customers, rather than end “innovative deals”.

An increase of 24% could see £1,000 bills go up by £240 a year.

Last week saw Ovo Energy, which was previously the cheapest provider on the market, put its fixed rate prices up by 8%.

Chris Eagle, energy expert at Energychoices.co.uk, said: “Gas and electricity prices are predicted to rise across the market, with many analysts advising consumers to fix their prices and take advantage of the lowest rates for two years.

“Even Npower has advised consumers affected by its upcoming price rises to compare energy tariffs online and switch to the cheapest package.”