Now npower raises the cost of bills

Energy provider npower is to increase the cost of gas and electricity for the second time this year, it confirmed today.

The move comes just two weeks after British Gas announced price hikes for its millions of customers.

Npower said the increases were in response to a significant rise in wholesale gas and electricity costs and would come into force on 1 October.

David Threlfall, chief executive of npower retail, said: "We realise that any increase is unwelcome and has implications for households trying to manage their bills, so our new rates will be frozen until

Npower said an unprecedented rise in wholesale gas costs of nearly 40 per cent over the past year had affected all suppliers. This in turn affected the cost of electricity, as 40 per cent of the UK's electricity is produced by gasfired power stations.

British Gas said last month that household gas bills would rise by 12.4 per cent and electricity by 9.4 per cent from September 20.

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