No staying npower...

240,000 customers dump supplier

ENERGY giant npower is braced for a customer exodus – on top of 240,000 who dumped the supplier at the start of this year.

The firm, one of Britain’s Big Six suppliers, saw customer numbers crash to 4.51 million. And the company admits a recent round of price hikes meant even more people would go elsewhere. Npower increased its standard electricity prices by 15% and gas by 4.8% for 1.4 million customers in mid-march. Boss Paul Coffey said: “While the price rise was essential to meet market costs, in the short term it will be at the expense of customer numbers.” Rival supplier British Gas lost 261,000 customers in the first three months of this year. It comes as energy suppliers have been left reeling by the Tory manifesto pledge to cap standard prices. Although full details have not been revealed, experts reckon it will hammer suppliers’ profits. However, Theresa May’s plan backfired after it emerged the cap would not prevent prices rising. Coffey alluded to the cap, saying: “Looking further ahead, the prospect of further proposed market interventions raises risks for competition, customers and companies alike.” Npower said profits tumbled from £101million to £29m in the first three months of 2017, with revenues down £164m to £1.7billion. The firm blamed the drop on “significantly rising” wholesale energy prices and government-imposed policy costs.