Utility giant npower has become the fifth energy supplier to raise its prices in less than two months. As of today (August 29), the company is raising its gas prices by 26% and electricity by 14%.
The energy company blames the move, which will see an average annual increase of £162 for gas customers, on “massive increases” in wholesale costs. It will be investing £50m on its social programmes aimed at vulnerable consumers, most of which will go on a new tariff called Spreading Warmth.
Npower managing director Giuseppe Di Vita says: “I’m sorry we’ve had to increase our prices – and we’ve made this decision extremely reluctantly, especially as household budgets are being squeezed so much at the moment.”
The move by the utility company follows the lead of EDF Energy, British Gas, E.on and Scottish & Southern Energy, which have all recently raised their prices. EDF Energy, the first supplier to make the change, raised gas prices by 22% and electricity by 17%.
Its rival British Gas hiked its prices by 35% for gas and 9% for electricity at the end of July. The last of the big six energy suppliers, Scottish Power, has also raised its prices by 34% for gas and 9% for electricity from September 1.