With npower the most recent company to announce a rise in its domestic power prices (9.9%), it could be argued that the price increases across the industry are a little premature given that power prices have fallen by 20% in the last three months. In truth, the supply businesses have been nursing some very heavy losses from the dramatic rise in 2005 and the early part of 2006 and have therefore had to recover their profits. Ofgem at some point might well have to look at competition issues if all the power suppliers continue to follow each other with price increases. But perhaps the greatest concern for customers are the long term deals on offer, allowing customers to lock in at this years prices for the next three years.

Good value? Well given that the forward price is trading in backwardation with 2009 £5 lower than 2007, this is daylight robbery. SME customers should look carefully at three year prices before they lock it in and some long term forward price info would help dictate terms and conditions.