Decc rejects ‘misleading’ Npower bill rise analysis

Npower’s forecast of steep rises in energy bills is “misleading on so many levels”, the Department of Energy and Climate Change has said.

The government follows Ofgem in rebutting the energy supplier’s analysis of the future impact of policy and regulation on energy bills.

In its second “Energy Explained” report, published on Wednesday, Npower said levies on bills were set to triple between 2007 and 2020. The typical annual household bill will rise to £1,330 in the absence of energy saving measures, it said.

The document and its predecessor last July stated an intention to “rebuild trust in our industry by presenting facts rather than opinions”. It also sought to show how bill rises were driven by costs beyond suppliers’ control.

Far from building consensus, however, the reports have sparked controversy by contradicting both the government and the regulator.

Decc said a number of the policies listed by Npower had no impact on household bills, including the Renewable Heat Incentive, Climate Change Levy and the Carbon Reduction Commitment.

Decc estimates its policies will lower bills by up to £166 in 2020. That analysis has also been criticised, for making optimistic assumptions on energy efficiency and taking credit for the impact of European policy, which the UK does not control.

At the last minute before publication, Npower revised its figures on the impact of network costs after Ofgem said the company had got them wrong.