npower price announcement
10 Dec 2010 
National / Tariffs/Prices
- No price increase this year
- 5% increase for gas and electricity tariffs
- No increase for most vulnerable customers - social tariff fixed at current rates until April 2011
npower has today started to write to customers to inform them of changes to their energy bills. From 4th January 2011, domestic gas and electricity tariffs will increase on average by 5% - or £54 per year for monthly direct debit dual fuel customers (1).
This is the first increase in its standard domestic energy prices for more than two years.
Despite higher network charges, new environmental obligations and an increase of 50% in wholesale prices during the last twelve months, npower has protected its customers. Indeed, in March, it introduced a 7% gas price cut - its second price cut since September 2008. Even after this new increase, gas prices are still cheaper than at the end of 2008 (2).
Kevin Miles, CEO npower retail, said: “When wholesale costs are driving prices up it’s a good time to review the way you manage your energy. Making the right choices can help to offset any increase in the bill. If you’re worried about your energy bills we’re here to help.”
Customers can:
- Change the way they pay
We offer incentives to pay by monthly direct debit – it’s cheaper for us and we give you a discount. - Contact us for energy efficiency advice
Our Home Energy Service engineers can help you cut down your energy use. - Pay for what they use and say ‘no’ to estimated bills
Send us regular meter readings to make sure you only pay for what you use. - npower social tariff fixed until April 2011(3)
Protecting vulnerable customers is a priority, so npower is fixing its social tariff over the winter period until April 2011
Notes to Editors:
1 - Weighted average across the npower customer base, taking into account payment method, fuel mix and region and using for comparison Ofgem's revised medium user consumption figure of 16,500 kWh of gas and 3,300 kWh of electricity (unchanged).. Actual price increases will vary according to fuels taken, applicability of discounts, and by region and consumption.
Changes to Gas notional consumption levels
Ofgem's previous medium user consumption figure for gas was 20,500 kWh Suppliers’ energy efficiency commitments and action by customers have had a real impact on the average gas consumption levels of British households. From 17th January 2011 Ofgem will introduce a new level of 16,500 kWh for annual gas consumption for a medium sized property. All energy suppliers use these figures in order to calculate either decreases or increases in consumer gas bills.
2 - Gas prices based on Ofgem’s revised medium user consumption figure of 16,500kWhs.
Gas | Dec 2008 | Jan 2011 |
MDD (Monthly Direct Debit) | £671 | £626 |
QCC (Quarterly Cash Cheque) | £692 | £679 |
PAYG (Pay As You Go) | £676 | £665 |
3 - npower social tariff (Spreading Warmth Tariff)
Customers on npower’s Spreading Warmth tariff will be protected over the winter period. On average, the annual tariff is £200 cheaper than standard dual fuel tariffs, based on notional consumption of 16.500kwhs gas and 3,300kwhs electricity.
4 - npower is the fourth energy supplier to announce changes to retail prices. British Gas, Scottish and Southern Energy and Scottish Power have already implemented increases to their tariffs.
Price increase implementation | Gas | Electricity |
| | |
Scottish Power – 25 November | 2% | 8.9% |
Scottish and Southern – 1 December | 9.4% | |
British Gas – 10 December | 7% | 7% |
npower – 4 January | 5% | 5% |
Eon has committed to hold prices until 1 January 2011
EdF has committed to hold prices until 1 March 2011
For more information contact:
npower has 6.5 million residential gas and
electricity accounts throughout the UK. npower is a market leader in renewable energy.
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