Npower profits soar £500m, just as your bills rise 17 per cent

Npower profits soar £500m, just as your bills rise 17 per cent

22nd February 2008

The Daily Mail

Probe: UK energy industry regulator Ofgem is launching an investigation into the country's electricity and gas markets
Energy giant npower has revealed a 41 per cent increase in profits only weeks after it hit millions of households with price increases.

The German-owned company pushed up gas and electricity bills by as much as 27.1 per cent last month.

At the same time the firm has been disconnecting as many as 69 customers per week over arrears - more than any other company.

Yesterday npower said its profits last year surged to £544million.

The haul came from charges to 6.8million homes and from selling electricity generated at the firm's nine UK power stations.

The news came a day after British Gas declared profits of £570million for last year, an astonishing 501 per cent increase on 2006.

The other major suppliers, German-owned Eon, EDF, of France, Scottish Power, in Spanish hands, and Scottish & Southern Energy also made big profits last year.

There are fears that monopoly firms in Europe are rationing supplies to the UK in order to force up prices and profits.

The claims have prompted an inquiry into the UK energy market by the industry regulator, Ofgem.

MPs have also announced an inquiry amid fears that up to four million Britons are having to choose between heating and eating.

Charities-such as Help the Aged have warned older people might die for fear of turning on their heating this winter. Age Concern said suppliers should be made to offer their lowest social tariffs to vulnerable households by law.

Ofgem has named and shamed npower over its failure to find ways to help customers who are in need with their bills. It cut off 69 homes a week during the first nine months of last year - a 418 per cent rise in two years.

A spokesman for consumer group Energywatch, Adam Scorer, said: "Npower has the worst record when it comes to helping consumers in debt and the worst record on disconnections."

Npower claimed it needs last year's profits boost to invest in new UK power stations, including a new £600 million gas-powered plant at Staythorpe in Nottinghamshire.

A spokesman said: "Older power stations are closing and we need to invest in new stations to guarantee power supplies. Our new power station at Staythorpe will cost more than our entire UK profit in 2007."

Npower insisted that it only cuts off people who won't pay. The company made clear it has no intention of changing its ways.