New offerings from npower turns the UK utilities market on its head

Published:

20/07/2009

Topic:

Press Release,Gas & Electricity

Today's product launches from energy giant npower now offer most UK bill payers classified as 'low' or 'high' users the cheapest deals on the market, according to moneysupermarket.com (see table below).

• npower launches SOL 16 and Web 16 for the UK's market
• npower now best value option for most households with 'low' and 'high' energy consumption
• Cheapest provider still varies according to your level of energy consumption, says moneysupermarket.com

According to research from the UK's leading price comparison site, the npower SOL 16 tariff is now the cheapest in all 14 UK regions for 'low' consumption bill payers¹ - those living in flats or on their own for example - with an average annual bill of £506. It replaces its own SOL 15 tariff in 12 of those regions, and British Gas WebSaver 3 which was previously cheapest for bill payers living in South Wales and Yorkshire.

For those households with higher consumption, for example a four bedroom family home, npower also hits the top spot for best value over 12 regions with its Web 16 tariff at an average cost of £1,385 a year. E.ON's EnergyOnline Extra Saver 14 claims the remaining two regions; the Midlands and the South.

Scott Byrom, utilities manager at moneysupermarket.com said: "These offerings change the landscape for UK bill payers - it is good news to see two new products entering the utilities market, especially ones that can compete with the likes of British Gas WebSaver 3. This competition between providers only further strengthens the utilities offering to customers, especially important at a time when we are all looking for ways to cut our household expenditure despite there being a round of price cuts from the 'Big Six' already this year².  Those bill payers with low or high energy consumptions in particular are likely to see considerable savings by swapping to one of the two new npower tariffs."

The WebSaver 3 tariff from British Gas retains its position as the cheapest product on the market in all but one of Britain's 14 regions for an 'average' house, with an average bill of £1,018 per year on average.  However, the new npower Web 16 tariff does have a foothold as offering the cheapest tariff in the East of England.

Scott Byrom continued: "It's concerning to think so many Brits living in flats and terraced houses could be paying over the odds for their gas and electricity by not correctly identifying the best value energy product for their consumption. Figures for an 'average' house are used in advertising and as the default numbers when comparing prices, so if you are unsure as to your typical energy usage, you may well choose a tariff that isn't the best deal for you and doesn't represent your household's consumption. For bill payers looking to swap their supplier to save pennies, it's essential to remove the guess work and thoroughly check your bills to determine the energy consumption for your property.

"It is clear online tariffs remain the best deals on offer for Brits, no matter what your consumption. Bill payers still languishing on standard tariffs could be missing out on considerable savings by choosing to pay quarterly by cash or cheque rather than monthly direct debit.  But whether you pay by monthly direct debit for an online tariff or by quarterly cash or cheque for a standard deal, just because a provider is cheapest for your neighbour, it doesn't mean they'll be cheapest for you. I advise each person to evaluate their own situation and find the right tariff to cut the cost of their bill. Shopping around for the best energy deal is a quick way to make big savings".

Dual fuel tariffs from the UK's 'Big Six' for households with low, medium and high consumption¹: 

Region	Low User		Medium User		High User
	Tariff	Bill (£)	Tariff	Bill (£)	Tariff	Bill (£)
Eastern (SS1 3NR)	npower SOL 16	£501.14	npower Web 16	£1,008.85	npower Web 16	£1,369.38
East Midlands (MK17 8LH)	npower SOL 16	£502.28	British Gas WebSaver 3	£1,010.76	npower Web 16	£1,371.07
London (N7 9QF)	npower SOL 16	£500.40	British Gas WebSaver 3	£1,006.79	npower Web 16	£1,370.46
North Wales (CH4 9EQ)	npower SOL 16	£514.78	British Gas WebSaver 3	£1,035.52	npower Web 16	£1,407.66
Midlands (B42 2DT)	npower SOL 16	£507.74	British Gas WebSaver 3	£1,021.89	E.ON EnerygyOnline Extra Saver 14	£1,378.38
Northern (YO11 2AQ)	npower SOL 16	£505.23	British Gas WebSaver 3	£1,016.54	npower Web 16	£1,375.22
North West (M20 6EG)	npower SOL 16	£501.45	British Gas WebSaver 3	£1,008.95	npower Web 16	£1,369.30
North Scotland (IV2 4NE)	npower SOL 16	£507.03	British Gas WebSaver 3	£1,020.16	npower Web 16	£1,390.50
South Scotland (G32 9NH)	npower SOL 16	£506.85	British Gas WebSaver 3	£1,019.51	npower Web 16	£1,385.56
South East (RH16 4JH)	npower SOL 16	£495.80	British Gas WebSaver 3	£997.65	npower Web 16	£1,363.40
Southern (BA7 7HF)	npower SOL 16	£507.95	British Gas WebSaver 3	£1,022.36	E.ON EnerygyOnline Extra Saver 14	£1,389.99
South Wales (CF3 1SX)	npower SOL 16	£523.29	British Gas WebSaver 3	£1,052.50	npower Web 16	£1,437.65
South West (BA2 3HP)	npower SOL 16	£506.61	British Gas WebSaver 3	£1,024.80	npower Web 16	£1,392.60
Yorkshire (HU17 8LL)	npower SOL 16	£509.95	British Gas WebSaver 3	£1,010.85	npower Web 16	£1,364.01

Sourced by www.moneysupermarket.com 16.07.2009

- Ends -

Notes to editors:

¹ When it comes to choosing an energy tariff the majority of bill payers will choose from costs based on the average consumption of a medium house - 3,300 kWh of electricity and 20,500 kWh of gas. However, levels of use can vary greatly depending on the size of your home (see table below).
 

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