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Npower latest energy supplier to cut gas prices

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
08/02/2016

Npower is to cut the cost of its standard gas price, benefiting over one million customers, but an energy expert said the savings will be “minimal”.

The energy giant today announced it will reduce domestic gas prices on its standard and pre-payment tariffs by an average of 5.2%, benefiting 1.2 million customers.

If you’re an Npower user who receives gas on its standard tariff, you’ll save an average of £32 a year. For those on Npower’s Feel Good Fix (April 2017 or May 2017), the price cut means you’ll save an average of £28 a year.

But the price cuts don’t kick in until 28 March and if you’re a pre-pay customer, you’ll need to top up your card or key from this date onwards to benefit from the reduction. Npower confirmed there will be no change to  electricity prices or on to standing charge.

Npower, which was rated one of the worst energy companies in a Which? customer satisfaction survey in February 2015, is the fourth of the big six energy firms to announce price cuts in recent weeks:

Eon cut its standard gas tariff by an average of £32 a year from 1 February.
SSE will cut is standard gas tariff by an average of £32.80 a year from 29 March.
Scottish Power will cut its standard gas tariff by an average of £32 a year from 15 March.

Npower said it was cutting prices “in line with our overall costs”.

It said that it buys energy well in advance, so is “playing catch-up” with falls in the wholesale market, but will continue to review wholesale costs to see if it can lower prices further.

Not enough to make a noticeable dent in your bill

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.”

Murray added that while a drop is good news for bill payers, customers could save nearly £300 by switching to a competitive fixed price deal already available on the market, as the best deals don’t come to those staying on standard tariffs.