Npower finally announces price reductions

Published:

16 March 2009

Topic:

News,Gas & Electricity

Npower has said it will reduce electricity prices at the end of March. The announcement means that all six major energy firms have now laid their cards on the table and confirmed that bills are set to fall.

However, providers have been criticised for passing on minimal price cuts - households will only see their annual bill drop by about £50. But most could make further savings by switching provider so utility experts are urging consumers to take action and move to a cheaper tariff.

Npower is cutting electricity prices by an average of 7.2%. It is not changing its gas prices. This means that the company's 6.8million customers will see their annual bills fall by an average of just £35.46. The new electricity prices will take effect on March 31, however, they will apply only to customers on npower's standard tariff - the costs of its online deals are not changing.

Scott Byrom, utilities expert at moneysupermarket.com, said: "Npower is reducing electricity prices by 7.2% but the firm's 6.8million customers will no doubt be disappointed to see no change to gas prices. Those on a standard tariff will benefit from just over £35 being knocked off their bills - taking the average annual cost down to £1,054.

"This cut from npower means on average British bill payers will have seen a 2.3% decrease to the cost of there gas and a 4.6% cut to electricity so far this year - cold comfort for those still struggling to pay their bills for energy used during the winter months. Those who have never changed their energy provider, or who are on a standard tariff should shop around for a better deal now."

Switching energy provider is easy. For more information watch our video 'How to switch energy provider' and read our article 'Switch energy provider and save'.

Related Links

• Read our article ‘Switch energy provider and save’
• Watch our video ‘How to switch energy provider’
• Compare tariffs from UK gas and electricity providers