Npower announces 17.2 percent hike in household gas bills |
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Published
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Thu, 07 Sep 2006 18:55
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LONDON - Energy Company Npower has announced a 17.2 percent rise in household gas bills effective on October 1. This is the third time this year that Npower has increased the energy bills. The company also announced a 9.9 percent hike in electricity bills.
Npower blamed rising wholesale costs for the price rises. It added that the increases would mean an extra £92 for gas and £36 for electricity. Npower, which is controlled by German utility group RWE, had earlier increased the prices in January and two months later in March. "Npower has been forced to put up prices due to massive increases in wholesale (gas) costs, which have increased by 250 percent since 2003 and by over 60 percent during the last twelve months," the company said in a statement.
The company said it was forced to take action after it kept a tight rein on the bills in 2005. "Despite today's announcement, we remain very competitive," said Kevin Miles, managing director of Npower residential. "Our average dual fuel bills are still £91 cheaper per year than British Gas. We are the last of the major energy suppliers to raise our prices."
The price hike comes just days after British Gas announced a price rise. Mr Miles said the company had tried to keep the costs under control as much as possible. "Npower customers pay lower prices for longer. We're protecting our customers from the full impact of the increases in wholesale energy costs," he added.
Wholesale gas and energy prices have hit the roof this year due to increased demand and well as instability in the Middle East. Most gas suppliers have increased their prices, although analysts say that this round of price rises may have peaked.
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