Money News
Energy utility npower has confirmed that domestic customers will see their gas and electricity bills rise by an average 17.2% and 12.7% respectively - effective January 5th. In plain terms it will mean an average annual increase of £95 for a typical gas bill, £64 for electricity.
The firm says it has been forced to put up prices because the cost of buying energy on the wholesale markets has increased dramatically. Since mid February 2007 it claims electricity wholesale costs for 2008 have increased by 66% and for gas by 60%.
In addition, it claims that along with its rival energy suppliers, it's facing other significant cost pressures such as increased gas and electricity distribution and transmission costs.
Meanwhile, the spend required to meet the Government's energy efficiency targets has doubled and npower says it will be spending around £300million on energy efficiency measures for customers over the next three years.
Customers paying by pre-payment meters (PPMs) will see lower average price increases of 9.8% for electricity and 15.7% for gas.
On the plus side the firm says it will be providing an extra £4 million for its 50,000 most vulnerable customers - who will each receive a rebate of between £80 and £100. These customers will also be offered free loft and cavity wall insulation to further help offset the impact of the increase.
04 January 2008 © Moneyextra.com
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