Effective from December 1, 2013, the hike is attributed by the company to increase in energy supply to homes, fulfilling government schemes and the raw materials used for energy generation.
Admitting that any increases to household bills are always unwelcome, RWE npower CEO Paul Massara assured that the company will continue to take steps wherever possible to reduce the impact of the external influences on energy bills.
”We only aim to make around 5 pence in every pound (5%) in our retail business which we feel is a fair return for delivering reliable energy to consumers and for the risks that we bear,” Massara added.
RWE npower becomes the third of UK’s largest six energy companies to increase energy prices, after Centrica and SSE, Reuters reports.
Britain’s opposition Labour Party has announced its plans to freeze energy prices for 20 months its wins 2015 elections.
Massara said the proposed price freeze ay appear superficially attractive but will not lead to lower sustainable prices going forward as it doesn0t cut the growing costs of supplying energy.
”Only 16% of the bill is under our control and imposing price controls discourages investment, increases uncertainty and ultimately leads to higher prices,” Massara added.
