This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7171345.stm

The article has changed 9 times. There is an RSS feed of changes available.

Version 0 Version 1
Npower set to detail price rises Double-digit rise in Npower bills
(about 1 hour later)
Energy firm Npower is set to provide exact details of its gas and electricity price increases later. Energy firm Npower has announced that electricity prices for its domestic customers will rise by 12.7%, while gas bills will see a 17.2% increase.
The energy firm will give more precise information at 1530GMT, after saying on Thursday that its prices would rise. Npower, the UK's fourth-largest energy provider, said it had been "forced to put up prices" because of soaring wholesale energy costs.
The price rises, which some analysts predict could be as much as 15%, come on the back of higher wholesale energy costs, lifted by record oil prices. It said it expected rival energy providers to follow suit with their own price rises "very shortly".
Commentators predict that other UK energy providers will soon follow suit with their own price rises. Npower's four million customers will pay the higher prices from 5 January.
'No easy decision'
"Today's decision was not an easy one," said Giuseppe Di Vita, managing director of Npower's residential business.
Npower has given the other suppliers the green flag they've been waiting for Tim Wolfenden, uSwitch
"We always try to protect our customers for as long as possible but sadly higher energy prices are a fact of life."
Npower said wholesale energy prices for 2008 had increased from last year by 66% for electricity, and 60% for gas.
However, its price rises have already been condemned by independent consumer watchdog Energywatch.
"Consumers are always being softened up with talk of 'unavoidable' price rises," said Energywatch spokesman Karl Brookes.
"The wholesale price for gas has risen, it's true, but all suppliers can decide to absorb more of that themselves rather than pass all the rise on to consumers."
'Difficult environment''Difficult environment'
Npower, the UK's fourth-largest energy provider with four million customers, has already increased its online tariff for new customers, raising that by 17% towards the end of last month. Price comparison website uSwitch said it had only been a matter of time before one of the energy suppliers put up its prices.
In December, British Gas owner Centrica announced that it was increasing the price of its market tracker tariff, which mirrors movements in energy market prices. "By announcing price increases today, Npower has given the other suppliers the green flag they've been waiting for," said uSwitch's head of home services, Tim Wolfenden.
Npower, a subsidiary of German company RWE, had already increased its online tariff for new customers, raising that by 17% towards the end of last month.
In December, British Gas parent Centrica announced that it was increasing the price of its market tracker tariff, which follows movements in energy market prices.
British Gas went on to warn that rising wholesale prices meant the energy industry was facing a "difficult environment" in 2008.British Gas went on to warn that rising wholesale prices meant the energy industry was facing a "difficult environment" in 2008.
"Price rises have been on the horizon for some time," said Tim Wolfenden, head of home services at uSwitch.com.
Analysts say wholesale gas prices have risen on the back of the record cost of crude oil, as any increase in the price of oil has a knock on effect on gas.
Wholesale gas prices in the UK are also said to have been driven higher by the growing number of energy firms on the continent turning to the more liberalised UK market for cheaper supplies.
Independent consumer watchdog Energywatch has condemned Npower's price rises.
"The wholesale price for gas has risen, it's true, but all suppliers can decide to absorb more of that themselves rather than pass all the rise on to consumers," said Energywatch spokesman Karl Brookes.