Paul Coffey, CEO npower commented:

“npower’s Q1 results are at an expected but disappointing stage in the long term recovery of our business.

“On the positive side npower is now half way through a multi-year £200m recovery programme and our no-nonsense approach to driving out costs and improving business effectiveness is delivering in line with our original plans for the business. 

“On the negative side, as has been reported by competitors, the first quarter saw significantly rising commodity and energy policy costs in the U.K. Together with an extremely tough competitive environment this meant that external cost increases outstripped the improvements we have made.    

“For the remainder of the year, this trend will partially reverse with the implementation of our price rise in mid-March and the ongoing contribution of the recovery programme.  While the price rise was essential to meet market costs, in the short term it will be at the expense of customer numbers.  Looking further ahead, the prospect of further proposed market interventions raises risks for competition, customers and companies alike.”