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Third price rise for Npower users Npower announces third price rise
(20 minutes later)
Energy company Npower is to increase its prices for domestic customers for the third time this year. Energy company Npower has announced its third price increase for domestic customers so far this year.
From 1 October, gas bills will increase by 17.2% and electricity by 9.9%, the company said. Its six million customers will face a 17.2% rise in their gas bills while electricity prices will go up 9.9% from 1 October.
It blamed the rise on an increase in wholesale energy prices, which it said had jumped 250% since 2003 and 60% in the past year. Rising wholesale energy prices, which it said had jumped 250% since 2003 and 60% in the past year, were blamed.
The new charges will lead to an average increase of £92 a year for gas users and £36 for electricity customers.The new charges will lead to an average increase of £92 a year for gas users and £36 for electricity customers.
Npower first raised its prices for customers in January, and again in March. Npower, which is owned by German utility group RWE, first raised its prices for customers in January, then again in March.
The group said it had been forced to take action after freezing prices for the previous two years. 'Competitive rates'
"Despite today's announcement, we remain very competitive: our average dual fuel bills are still £913 cheaper per year than British Gas," said Kevin Miles, managing director of Npower residential. Npower said it had been forced to take action after freezing prices for the previous two years.
"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."
The news comes just days after the latest price rise from rival British Gas came into effect.The news comes just days after the latest price rise from rival British Gas came into effect.
"We are the last of the major energy suppliers to raise our prices - Npower customers pay lower prices for longer," Mr Miles added. "We are the last of the major energy suppliers to raise our prices," Mr Miles added.
"Npower customers pay lower prices for longer.
"We're protecting our customers from the full impact of the increases in wholesale energy costs.""We're protecting our customers from the full impact of the increases in wholesale energy costs."
The group added it would be extending its "gas guardian" tariff, which freezes prices at the level charged by British Gas before the latest round of price rises, until 2008.
Cost squeeze
All of Britain's energy suppliers have raised prices sharply this year on the back of surging wholesale gas prices.
The price of wholesale gas in the UK has been increasing as the country's stocks in the North Sea have declined, forcing more to be imported from Europe.
Wholesale gas and energy prices have also risen in line with the high cost of oil, which has increased because of political instability in the Middle East and strong global demand led by fast-growing economies such as China.