Npower becomes latest energy provider to raise bills after price cap hike

Npower is the latest major energy provider to raise bills following Ofgem’s decision to increase its industry-wide price cap.

The Big Six company will hike prices by 10 per cent, a move that will affect 1 million customers on npower’s standard variable tariff.

Prepayment meter customers will also see bills increasing, by around 9 per cent on average, with the changes set to take effect from 1 April.

Rik Smith, energy expert at uSwitch, said: “It’s third time unlucky for energy customers as another of the Big Six suppliers has announced it will be pricing up to the new cap level.

“These announcements are coming like clockwork, shattering the myth that the cap is guaranteeing a good deal for customers on standard tariffs.”

Npower’s announcement follows similar moves by E.On and EDF a week after Ofgem revealed that the energy price cap is going up.

The cap, which was introduced in January at £1,137, will rise by £117 for customers on default tariffs, including standard variable tariffs on 1 April. The cap for prepayment meter customers will also increase, by £106 to £1,242 per year. The change will affect around 15 million households.

Mr Smith added: “It’s vital that households don’t fall for the price cap con. Since Ofgem announced last week that the level of the cap was going up, over four million customers have already been handed a £490m confirmed bill increase. Unfortunately this number is only going to get bigger.

“But consumers can escape the cap trap by acting now. Npower’s standard tariff will be £294 more expensive than the cheapest deal on the market today. The savings are real, but the idea that you’re better off under the cap rather than switching is a complete fallacy.”