Npower raises prices: the best fixed-rate and variable energy deals
Npower is raising energy prices by an average of 5.3pc for dual fuel customers, representing an annual bill hike of £64 for more than a million customers.
The increase will come into effect on June 17, and follows similar price rises announced last month by EDF Energy and British Gas.
EDF's 1.4pc price hike will affect around 1.2 million customers, who will see their dual fuel bills go up by an average of £16 a year, while British Gas's increase of 5.5pc, or £60 a year, will impact 4.1 million households from the end of May.
Simon Stacey, managing director of domestic markets at Npower, said: "Announcing this price change today isn’t a decision we’ve 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."
Scroll down for...
Does it pay to switch?
What to do right now
Best fixed and variable deals
Bookmark this page – updated regularly – to keep your bills low
Reader Service: Save on Gas and Electricity with the Telegraph Energy Switching Service
Does it pay to switch?
Switching supplier can save the average consumer £263 on their annual energy bill, according to Energyhelpline, a price comparison service.
If you decide to shop around for a better contract, you will need to know the name of your current energy plan and an estimate of your usage. If you haven't kept your bills, or have recently moved and don't have access to the previous occupant's bills, you can ask for these details from your supplier.
Most variable tariffs will let you switch without a charge. But some fixed-rate deals and online-only offers might charge if you leave before the end of the term.
Negotiate
Even if you are locked into a fixed-rate tariff with an exit fee, you may be able to negotiate a better deal with your current supplier or elsewhere. Ring your provider and ask whether it can make a counter offer. If not, check whether the saving from switching to a new supplier outweighs the costs.
Best fixed deals
The cheapest fixed deal is currently offered by One Select, with its Secure Spring one-year fix currently charging an average £810. There is no early termination fee.
Ofgem says all suppliers must contact customers 42-49 days before their fixed tariff comes to an end. Once you have received the letter you are free to switch without penalty.
Even if you're on the cheapest fixed deal be sure to switch when it comes to an end or risk being rolled onto your supplier's standard variable fixed tariff.
Best variable prices
Fixed-rate prices are traditionally cheaper than variable tariffs, but this has changed over the past year. The current cheapest deal is offered by Utility Point at £796.
If you're already on a variable tariff remember suppliers must notify customers 30 days before a price rise, which means there is time to switch to a cheaper deal. Early exit fees do not generally apply to variable tariffs.
Advice for spring 2018: switch to a fix
Variable and fixed-rate tariffs are similarly priced but if you fix you'll protect yourself against rises.
Npower, E.On, British Gas, and EDF have all increased the cost of their standard variable tariffs now, and it's likely the rest of the "big six" will shortly follow suit, said uSwitch's Osborne.
With upwards of 50 energy companies in the market, consumers have plenty of choice and could save up to £491 by switching to a cheaper deal.
There are many fixed deals, such as Avro Energy's "Simple and Flow" and One Select's "Secure Spring one-year fix" that do not come with early exit fees, so customers can switch if something better comes along.
Osborne said: "The Government's proposed widespread cap for the 12 million households on a standard variable tariff... looks like [it] is having an impact on the big six suppliers, who may be choosing to hike their prices ahead of a cap being introduced.
"They may also be relying on consumers not switching if they mistakenly believe that they are, or will be, on a good deal under a price cap scenario, and the danger is that they miss out on the larger savings available by switching.
"Consumers must vote with their feet when prices get too high – only then will suppliers get the message that they can't continue to raise their prices and expect their customers to keep paying."
Any switching catches?
While switching could save you hundreds of pounds each year, beware hefty exit fees of up to £100 for dual fuel.
Customer service may not be important if your home is in working order. But if something did go wrong, be warned that many of the suppliers listed in the table above also attract a number of customer complaints.
Letters to Telegraph Money suggest that npower and Scottish Power offer consistently poor customer service. If you do choose one of these companies, do not be surprised if you encounter difficulties in resolving issues for the time being.
