NPOWER with a 17% hike in prices - Here we go

magyar

I'm not convinced about the 'fixed price' deals anyway. npower's current deal is that you fix for 3 years at prices 7% higher than they are today. Since they've just put prices up (and bearing in mind what the forward curve for wholesale electricity looks like), it's unlikely they'll do any more rises for at least 18 months. (certainly not of the magnitude of this one)

So even if in 18 months they do another 15% rise, you'll have paid half of that rise in advance.

Cardew

magyar wrote: »

I'm not convinced about the 'fixed price' deals anyway. npower's current deal is that you fix for 3 years at prices 7% higher than they are today. Since they've just put prices up (and bearing in mind what the forward curve for wholesale electricity looks like), it's unlikely they'll do any more rises for at least 18 months. (certainly not of the magnitude of this one)

So even if in 18 months they do another 15% rise, you'll have paid half of that rise in advance.

You may well be right about 'fixed price' deals, but I think I am right in saying that every fixed/capped price deal offered by every company has been a good 'investment' for the consumer.

The argument you put forward was rehearsed at length on MSE at the end of 2005 about the BG fixed to April 30 2010 offer, with many taking your line and yet that deal has turned out to be a real money saver and still has another 2 years 3 months to run.

As with every other deal it is a gamble pure and simple. So, that said, would I gamble on the NPower deal - Nah!

briskly_2

MoneyMiser wrote: »

Hi All,

Please be aware that people who recently switched to nPowers Sign Online 8 tariff will not be effected by these price hikes. The same goes if your on Sign Online 9.

12.7% increase on electricity prices and 17.2% on gas prices. That is a massive jump and will effect people on the Standard, pre-payment, economy 7, SOL 4, 5, 6, 7 tariffs.

I wonder who will be next, I would bet my house that British Gas is next!!!

MM

I still can't find any info on the new tariffs - Npower's site is still not responding in the "prices" pages. Does anyone know the new rates? I'm particularly interested in Sign on-line 4.

ilikepoints

prices still not up on the site - anyone would think they had something to hide :whistle:

Quite like the idea of getting 25 days at the old prices by giving notice to leave. What would happen if I did that but didn't actually carry out the switch? (was ideally looking to switch in late march)

Be_Happy

Well I got my price increase letter today. So much for the 12% electricity rise, mine is a massive 25%. I'm in Scotland with Economy 7 on the SOL 6 tariff.

Strange thing is that enclosed with the increase letter is advert for their fixed until 2011 tariff. I phoned up to see what charges would be on this and was given rates lower than those on the increase letter. I don't think this can be right, although the girl used my account info and assured me the figures were correct. I've e-mailed asking them to confirm the fixed rates quoted, so may or may not get a reply, but I'm not going to believe them until I see it in writing.

As far as hiding their new rates go, they even do this on the increase letter. The whole letter goes on about the need to increase prices and finishes on one page. It's only when you turn the page over that the new rates are shown.

Anon

They have again been doing a big push on the price freeze adverts on radio today ... immediately after the news bulletin that they have also introduced regional pricing.

Anon

rombomb

I am with NPower in the Scottish Power region and on SOL6 tarriff. Got my letter yesterday with the new rates and phoned to ask about the Fixed 2011 thing. Here are the rates, all inclusive of 5% VAT.

The switch sites state that British Gas Energy 4 is the best to switch to, so I have included those prices for comparison (I do realise that they have still to put their rates up).

GAS
NPower was 3.821p/unit for first 4272KwH per annum then 2.149p/unit
NPower now 5.006p/unit 2.270p/unit
NPower fixed 6.51p/unit 2.24p/unit
British Gas 4.344p/unit for first 4272KwH per annum then 2.141p/unit

ELEC

NPower was 18.74p/unit for first 728KwH per annum then 8.02p/unit
NPower now 19.32p/unit 10.21p/unit
NPower fixed 14.28p/unit 13.15p/unit
British Gas 13.049/unit for first 900KwH per annum then 7.036p/unit

So, based on *my* annual consumption, I reckon my Gas is up 12% and Electricity is up 23%.

My totals per annum, again based on my consumption figures work out as:

NPower was £1491
NPower will be £1760
NPower fixed would be £1925
British Gas Energy 4 £1401

The above does not include any annual discount they give for duel fuel and assumes monthly direct debiit payment.

I notice that Quidco are giving some £60 cashback if I take the British Gas duel feul out through them.

I know that they are probably going to raise prices to, but at least I can stave off the NPower rises by calling them to state that it is my intention to switch supplier, and as such I believe the increases *cannot* be applied to your account as you are moving.

Why does Martin give switching the red light?

Cardew

rombomb wrote: »

I am with NPower in the Scottish Power region and on SOL6 tarriff. Got my letter yesterday with the new rates and phoned to ask about the Fixed 2011 thing. Here are the rates, all inclusive of 5% VAT.

The switch sites state that British Gas Energy 4 is the best to switch to, so I have included those prices for comparison (I do realise that they have still to put their rates up).

GAS
NPower was 3.821p/unit for first 4272KwH per annum then 2.149p/unit
NPower now 5.006p/unit 2.270p/unit
NPower fixed 6.51p/unit 2.24p/unit
British Gas 4.344p/unit for first 1143KwH per annum then 2.141p/unit

ELEC

NPower was 18.74p/unit for first 728KwH per annum then 8.02p/unit
NPower now 19.32p/unit 10.21p/unit
NPower fixed 14.28p/unit 13.15p/unit
British Gas 13.049/unit for first 900KwH per annum then 7.036p/unit

So, based on *my* annual consumption, I reckon my Gas is up 12% and Electricity is up 23%.

My totals per annum, again based on my consumption figures work out as:

NPower was £1491
NPower will be £1760
NPower fixed would be £1925
British Gas Energy 4 £1326

The above does not include any annual discount they give for duel fuel and assumes monthly direct debiit payment.

I notice that Quidco are giving some £60 cashback if I take the British Gas duel feul out through them.

I know that they are probably going to raise prices to, but at least I can stave off the NPower rises by calling them to state that it is my intention to switch supplier, and as such I believe the increases *cannot* be applied to your account as you are moving.

Why does Martin give switching the red light?

Thanks - your consumption is well above average it seems.

It seems strange that on the Npower fixed tariff that tier 2 gas prices are actually cheaper than on the Npower 'now' prices.(2.24p/2.27)

For a high gas user it would appear that to pay the extra £64 pa(for tier 1 increase) for the fixed deal might be a good deal?

Incidentally BG charge tier 1 rates for 1,143kWh per quarter not per annum as you state.

Based on your figures it seems that the BG tariff must be your best bet. BG would need to increase their charges by well over 30% before the equalled NPower's current tariff.

magyar

rombomb wrote: »

I know that they are probably going to raise prices to, but at least I can stave off the NPower rises by calling them to state that it is my intention to switch supplier, and as such I believe the increases *cannot* be applied to your account as you are moving.

Why does Martin give switching the red light?

I can't speak for Martin, but here's my logic.

There's absolutely nothing to stop you switching to, say, BG now and then, as and when they put their prices up, switching to someone else.

However, the processes for switching are dire. It's very likely that this will result in spending a lot of time on the phone sorting out billing problems.

Hence I wouldn't recommend switching more than once per year, or so, until you're happy with the billing. (This also maximises your dual fuel discount).

Then again, it's an expensive time of year, and if Quidco are offering £60 a pop, then it might be worth it.

rombomb

Cardew wrote: »

Thanks - your consumption is well above average it seems.

It seems strange that on the Npower fixed tariff that tier 2 gas prices are actually cheaper than on the Npower 'now' prices.(2.24p/2.27)

For a high gas user it would appear that to pay the extra £64 pa(for tier 1 increase) for the fixed deal might be a good deal?

Incidentally BG charge tier 1 rates for 1,143kWh per quarter not per annum as you state.

Based on your figures it seems that the BG tariff must be your best bet. BG would need to increase their charges by well over 30% before the equalled NPower's current tariff.

You are correct, I have recalculated the BG figures as it is indeed 4572KwH pa at the higher rate.

Figures are now:

NPower was 1491
NPower will be 1760
NPower Fixed 1925
British Gas 1401

And a new addition, Scottish Power Pricefall (capped to Nov 2008) is a very respectable 1545 (its acually cheaper for Gas than NPower was!). Quidco at £42 too! I could be tempted by this one, decisions, decisions?!