Npower has announced plans to increase energy bills by an average of £64 a year, affecting up to a million customers.
The gas and electricity supplier will increase bills by an average rate of 5.3 percent and will come into effect on 17 June.
“Announcing this price change today isn’t a decision we’ve taken lightly,” said Simon Stacey, managing director, domestic markets at Npower.
The group has blamed government policy changes and increases in energy costs for the rise.
Stacey said that wholesale costs are on the rise, “particularly wholesale and policy costs which are largely outside our control” – have been on the rise for some time “and we need to reflect these in our prices”.
“Less than half of our customers are on our standard tariff – one of the lowest levels among the larger energy suppliers. We continue to encourage all our customers to look at our range of competitive fixed deals and switch to a tariff that best suits their needs.”
The tariff rise is made up of the 4.4 percent increase in gas and 6.2 percent rise in electricity.
“This is a chunky rise from Npower – all we need now is something from SSE and it’s a full house from the Big Six,” said Stephen Murray, an energy expert at MoneySuperMarket.
“Npower says 60 percent of its customers won’t be affected but that still means 40 percent – or one million people – will.”
Price increases from the other Bix Six have already been announced.
British Gas customers will face a 5.5 percent increase from 29 May. The move will affect 4.1 million people who will have to pay an average increase of £60.
Npower’s 5.3 percent increase will affect one million customers and will be enforced from 17 June.
Scottish Power is increasing prices by 5.5 percent and will affect almost one million people from 1 June.