The Â£117/year price hike comes just six days after regulator Ofgem announced it was increasing the level of the price cap on standard and default energy tariffs from Monday 1 April. E.on and EDF both announced they would be raising their prices earlier this week.
Just over a million Npower customers will be affected by the rise, which will mean a Â£117/year increase to Â£1,254/year for a household with typical use. Yet this ISN’T the maximum anyone will pay, as the price cap places a maximum charge on the rate you pay for gas and electricity â use more and you’ll pay more, use less and your cap will be lower.
MoneySavingExpert.com founder Martin Lewis, commenting last week on Ofgem’s hike, predicted that “most of the big six providers [will] snuggle their prices right against the cap”.
He said it would “feel like a damp squib to most people”, as the new level was actually Â£34 MORE than firms were charging in December, before the cap launched.