8th February 2016
Energy supplier Npower has become the latest of the ‘big six’ energy suppliers to throw its hat in the ring and announce that it is cutting its gas prices.
From Monday 28 March, it is reducing its standard domestic tariff by an average of 5.2%.
The reduction, for approximately 1.2m customers means that on average, their annual standard domestic gas bill will be £32 cheaper at £591 per year, down from £623.
Paul Coffey, CEO RWE npower said: “This cut in gas prices is welcome news for many of our customers. We have balanced the wholesale price fall against increases in the other costs we are charged.“
Npower is the fourth big UK energy supplier to announce gas price cuts. E.On, lowered its fees by 5.1% on 1 February while Scottish Power, slashes its tariff by 5.4% on 15 March and SSE will lower its tariff by 5.3%, a day after Npower, on 29 March.
Commenting on today’s price cut from npower, Stephen Murray, energy expert at MoneySuperMarket, said: “The pressure has been piling on providers, who have dragged their heels on passing savings from the wholesale cost of gas and electricity on to consumers. Npower has now followed suit and cut prices for standard gas customers, but the savings are minimal.
“For those paying on direct debit, this equates to less than a £3 saving a month – hardly enough to make a noticeable dent in your bill.
“However, whilst any drop is good news for bill payers, this will still leave these customers paying on average nearly £300 more than those who have shopped around and switched to one of the many fixed price deals already available. So while we wait for the remainder of the Big Six to address the cost of their standard tariffs, consumers can rest assured the best deals can be won by switching, not by staying on standard tariffs.”