Energy price rise announced by npower

<p>Energy firm npower has announced its tariffs are being put up.</p>

Energy company npower has become the latest supplier to confirm it is raising the cost of gas and electricity.

The firm yesterday (October 21st) revealed that it will be introducing an electricity price rise of 9.3 per cent, while the cost of gas will be raised by 11.1 per cent.

Chief executive at npower Paul Massara stated that he is aware the price rises will be "unwelcome" to customers, but explained the decision to up tariffs was not taken lightly.

"We will continue to take steps where we can to reduce the impact of the external influences on energy bills," he said.

British Gas and SSE have also announced major changes to their gas and electricity bills over the course of the last few days.

It was claimed by npower that it has to charge more for gas and electricity to balance out the cost increases in delivering energy to homes, fulfilling government schemes and raw materials.

The share price of RWE npower is down this morning (October 22nd), as the markets continue to respond to the price rises.

At 08:26 BST, its stocks were trading 0.64 per cent down on the start of the session.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.