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npower announced today that it will increase prices on its tracker tariff effective January 1st. npower became the second major energy supplier to increase prices following a similar announcement from British Gas just ten days ago. With winter closing in, the prospect of increased energy bills will be most unwelcome news to British householders. npower says it will increase gas prices by 17 per cent and electricity prices by 13 per cent for all customers on its tracker tariff. The tracker tariff released at the beginning of the year was designed to follow the wholesale energy market and is reviewed every three months. npower tracker customers can now expect to pay an average of £87 more for electricity and £44 more for gas next year. British Gas having introduced similar price increases to their tracker tariff last week announced today that they would be carefully monitoring high wholesale prices with regard to their pricing policy. Analysts believe that today's statement from British Gas makes it clear that overall price rises are likely and if British Gas increases standard prices, other major UK suppliers will follow their lead Price increases in tracker tariffs give a very strong indication of how much standard prices are likely to go up by, and analysts believe that the average household may have to come up an extra £130 next year. While the overall outlook for energy customers is gloomy, the Scottish and Southern group which includes Atlantic, Southern Electric and SWALEC is still selling its Price Fix 2008 tariff. This tariff, which is the cheapest option available for customers in many regions, guarantees not to increase prices until November 2008. Commenting on today's announcements, Florian Ritzmann, utilities director with price comparison service Unravelit.com said "with price increases imminent across the board, we would advise energy customers to lock in the best deal possible while they still can. Offers like Scottish and Southern's Price Fix 2008 are unlikely to be available for much longer".
Simon Moynihan |
