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| Version 2 | Version 3 |
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| Double-digit rise in Npower bills | Double-digit rise in Npower bills |
| (40 minutes 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. | 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. |
| Npower, the UK's fourth-largest energy provider, said it had been "forced to put up prices" because of soaring wholesale energy costs. | Npower, the UK's fourth-largest energy provider, said it had been "forced to put up prices" because of soaring wholesale energy costs. |
| It said it expected rival energy providers to follow suit with their own price rises "very shortly". | It said it expected rival energy providers to follow suit with their own price rises "very shortly". |
| Npower's four million customers will pay the higher prices from 5 January. | Npower's four million customers will pay the higher prices from 5 January. |
| 'No easy decision' | 'No easy decision' |
| "Today's decision was not an easy one," said Giuseppe Di Vita, managing director of Npower's residential business. | "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 | 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." | "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. | 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. | 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. | "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." | "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' |
| Price comparison website uSwitch said it had only been a matter of time before one of the energy suppliers put up its prices. | Price comparison website uSwitch said it had only been a matter of time before one of the energy suppliers put up its 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. | "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 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. | 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. |
| Record oil prices | Record oil prices |
| Analysts say wholesale gas prices have risen on the back of the record cost of oil, as any increase in the price of crude has a knock-on effect on gas. | Analysts say wholesale gas prices have risen on the back of the record cost of oil, as any increase in the price of crude 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. | 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. |
| The higher cost of gas means increased electricity bills because gas accounts for 40% of electricity production in the UK. | The higher cost of gas means increased electricity bills because gas accounts for 40% of electricity production in the UK. |
| UK household energy bills last rose strongly in 2006, with most suppliers increasing their bills to counter higher wholesale prices. | UK household energy bills last rose strongly in 2006, with most suppliers increasing their bills to counter higher wholesale prices. |
| However, prices then subsequently fell back during last year. | However, prices then subsequently fell back during last year. |
| Earning power | |
| Npower is the supply business of UK-based RWE Npower, itself a subsidiary of German energy group RWE. | |
| RWE Npower also operates a number coal, natural gas, oil-fired and renewable energy power stations across the UK. | |
| Its most recent full-year financial results show that RWE Npower made an operating profit of 512m euros (£383m) in 2006. |