21 October 2013

nPower become the third to announce energy price rise

The third of the big six extend the misery with an even larger increase to fuel costs.

RWE Npower announce their price increase today and it's the largest so far at an average 10.4%. Gas rates are increasing by 11.1% and electricity by 9.3% from the 1st December.

Npower blame the same factors as SSE and British Gas for forcing their price increase:

• Government environmental and social scheme obligations like Ecco and Green Deal have increased by 31%.
  • Distribution costs have increased by 10% and are now £314 per dual fuel customer.
  • Wholesale energy costs are expected to increase by 3% this year. Paul Massara, CEO of RWE npower said they only aim to make a profit of 5p in the pound which represented a fair return for delivering energy and bearing the associated financial risks.

Npower's increase means approximately 15.5m homes will now be paying more for their energy this winter. Yet reasonably priced fixed term deals are still available to those who wish to switch.

In order to switch supplier, you simply need to know who supplies you now, what tariff you're on and how much energy you use. You don't absolutely have to know how much energy you use in kW/h but you'll get the most accurate quotes if you know and the information should be on your energy bill.

Using the MoneyMaxim switching service simply enter your details on the system, you can then choose your new tariff and supplier. Click on the "continue” button, fill in the details and job done. You'll receive an email acknowledgement immediately then you simply wait for the energy companies to switch you over. Your new energy company will need a meter reading which they'll pass back to the old supplier to produce a final bill and you will be on a better value tariff.