npower increases electricty and gas prices Energy giant RWE npower heaped more pressure on households today by hiking electricity and gas prices by 9.3 per cent and 11.1 per ncet respectively from December 1. The 10 per cent average bill increase will affect about 3.1 million customers, the group said, and follows recent price hikes by British Gas and SSE. The announcement came as Britain sealed a deal with French energy EDF to build the first nuclear power station in a generation at Hinkley Point in Somerset, after lengthy wrangling over taxpayer subsidies. Npower blamed the higher cost of delivering power to homes, meeting Government schemes and rising fuel costs, insisting it makes a "fair return for delivering reliable energy to consumers." Paul Massara, CEO RWE npower, said: "I know that any increases to household bills are always unwelcome, and this is not a decision that we have taken lightly. We will continue to take steps where we can 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. We understand that although the Labour Party's proposed price freeze may appear superficially attractive it will not lead to lower sustainable prices going forward because it doesn't 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. npower is committed to working with consumers, government and industry to deliver a modernised energy market which is affordable for customers and has a lower CO2 content. It is therefore essential that we have an open and honest conversation with customers about how they can take control of their bills and reduce energy consumption.