Npower raising prices by more than 10%

Npower has become the latest energy firm to raise its prices, increasing its dual fuel bill by 10.4 per cent.

It is now the third of the so-called big six energy providers to make the increase, with SSE and British Gas already adjusting their fees.

However, Npower has raised its prices by more than the other two at this point, with dual fuel costs for SSE and British Gas going up by 8.2 per cent and 9.2 per cent respectively.

A ten per cent rise on gas and electricity bills could be incredibly destructive to household finances and consumers are being urged to act now and find a tariff that saves them money before it is too late.

For example, some energy suppliers offer fixed rates that can protect against price hikes such as this and these can prove to be essential for keeping expenses down.

With the rising cost of living squeezing families, it is important for people to shop around for the best deal, else they risk falling into debt.

Indeed, several people in the UK owe energy firms money for unpaid bills already and an increase in fees will likely make the situation much worse, with repayment plans becoming even more difficult.

The Npower increase features an electricity price rise of 9.3 per cent and a gas extension of 11.1 per cent, impacting the firm's 3.1 million customers.

In real terms, individuals will have to find an additional average of £137 to pay for the typical annual dual-fuel bill, which will stand at a staggering £1,459.

It is now likely that the other three companies – Scottish Power, EON and EDF Energy – will follow suit so it is vital for consumers to act swiftly.

Clare Francis, editor-in-chief at MoneySuperMarket.com, said: "The domino effect has really kicked in … Npower is the third of the big six energy firms to announce a price hike and with two million customers hit with increases, even more UK households are feeling the pressure as their bills are set to rise."

By James Francis