Npower yesterday announced rises in gas and electricity prices which will come into effect later this year.

Energy company Npower is to raise gas prices by 15.7% and electricity prices by 7.2% from 1 October.

Npower is the fifth of the “big six” UK energy suppliers to announce rises for the coming winter, following Scottish and Southern Energy, Scottish Power, British Gas and E.ON.

Only EDF are yet to announce any price hikes. EDF is widely expected to announce price rises in the near future, however.

Npower, owned by German firm RWE, blamed the “volatile global wholesale market” for the increase.

While wholesale prices have risen this year due to Japan’s nuclear crisis and conflict in the Middle East, they are still not near their 2008 peak, but domestic energy bills have risen to record levels.

Npower’s Kevin Miles said: “With reduced quantities of North Sea gas, we are now forced to buy energy on the volatile global wholesale market. World events have pushed up prices and we believe this trend will continue.”

“I know it hurts everyone when we put up prices and I wish we did not have to,” he said.