Npower has announced an average price rise of 5.3 per cent. This is made up of an average rise of 4.4 per cent on gas and 6.2 per cent on electricity.
The company blamed “wholesale and policy costs” which are “largely outside its control”.
The changes, which come into effect on 17 June, will impact approximately one million of Npower’s domestic customers.
The company insisted more than 60 per cent of its total customer-base will not receive a price increase.
Managing director of domestic markets Simon Stacey said the decision “wasn’t taken lightly”. “The costs all large and medium energy suppliers are facing – particularly wholesale and policy costs which are largely outside our control – have unfortunately been on the rise for some time and we need to reflect these in our prices,” he added.
“Less than half of our customers are on our standard tariff – one of the lowest levels among the larger energy suppliers.”
Npower said it has a higher percentage of fixed-term tariff customers than most large suppliers and “continues to work hard to encourage customers to switch”.
The company has also today (11 May) launched “Price Freeze June 2022” exclusively for these customers, which it claims is the “longest fix on the market”. The aim of the tariff is to protect customers from potential rises over the next four years.
Npower is the fourth of the big six energy suppliers to have announced a price rise this season.
Last month, British Gas said it will raise its SVT by an average of 5.5 per cent from 29 May. It blamed the hike on rising wholesale and policy costs, including the smart meter rollout and schemes to reduce carbon emissions.
EDF Energy followed suit two days later, announcing its standard variable tariff will rise by 1.4 per cent for dual fuel customers from 7 June.
In the same month, Scottish Power upped its prices by 5.5 per cent, also blaming the hike on rising wholesale energy costs and compulsory non-energy costs, such as delivering low-carbon electricity and upgrading meters.