Energy price increases expected

Following the news that npower has announced it will be raising its gas and electricity prices, one expert suggested that other lenders may follow suit.

Tim Wolfenden, head of home services at uSwitch.com, said that suppliers are "paving the way" for further price increases across the market.

The decision by npower to increase its own prices is an indication that consumers may expect average energy bills of £1,000.

"The only question now is which supplier is going to break ranks first and put up prices on standard plans," he remarked.

Yesterday, moneysupermarket.com claimed that energy providers do not inform their existing customers of new less expensive tariffs.

According to the firm, the average household could potentially save £150 a year by switching to a more favourable deal with their present supplier.

Paul Schofield, head of utilities at the company, said that customers were being left to "languish" on older tariffs.

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