Npower announced that it is increasing a typical dual fuel energy bill by an average of 5.3% or £64 for approximately 1 million (40%) of its domestic energy customers.
The new changes will come into effect on 17th June. The increase is set to affect customers currently on Npower Standard Variable Tariff. A medium energy user will see their bills rise to £1,230, from £1,166 but customers can move to a cheaper deal or supplier to avoid the price hike.
The energy price increase is made up of an average rise of 4.4% on gas and 6.2% on electricity.
Npower has stated that the price increase is due to a rise in wholesale costs and Government taxes.
Customers who are on fixed-term energy deals, on Safeguard tariffs or who have a Prepayment meter will not be affected by the price hike.
Simon Stacey, managing director of domestic markets, said:
"Announcing this price change today isn't a decision we've taken lightly. The costs all large and medium energy suppliers are facing - particularly wholesale and policy costs which are largely outside our control - have unfortunately been on the rise for some time and we need to reflect these in our prices.
Less than half of our customers are on our standard tariff - one of the lowest levels among the larger energy suppliers. We continue to encourage all our customers to look at our range of competitive fixed deals and switch to a tariff that best suits their needs - whether that's our green product or a short, medium deal, or the market's longest fix.
While existing customers who are currently on a fixed deal, have a prepayment meter or on the Safeguard tariff are protected from these increases, we encourage any customer who is struggling with their energy bills to contact us."
Millions of British Gas, E.on, EDF and ScottishPower customers will also see their energy bills increase over the next few months, as they have all announced energy price hikes. You don't have to accept the hit on your pocket. You can either move to a cheaper fixed-term tariff with your current energy supplier or switch energy suppliers to save money. Energylinx offers a free and impartial energy comparison and switching service. You can call our energy advisors on 01259 220000 or see what you can save on our website.