Power bills on the rise

About 6.5 million Npower customers will face higher utility bills from next month as the energy supplier confirmed a hike in tariffs.

Household gas and electricity bills will increase by an average of 5 per cent from 4 January, which will equal 54 on the average annual dual-fuel energy bill.

Npower is the fourth of the "big six" energy suppliers to raise prices in recent weeks, following hikes from Scottish & Southern Energy, British Gas and Scottish Power.

Npower said higher network charges, new environmental obligations and an increase of 50 per cent in wholesale prices had forced it to increase bills.

But the company vowed to freeze its social tariff - for vulnerable customers, such as the poorest pensioners - until April next year.