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Four down, two to go as Npower announce 5.1% price cut

23 January 2015

Npower has become the fourth ‘big six’ energy supplier to announce a reduction to its gas prices.  The 5.1% cut takes effect on the 16th February and will reduce the bills of customers on its standard variable tariff by around £35 per year.

E.on was the first of the ‘big six’ to pass on savings to its customers, announcing a 3.5% reduction to its gas prices last week. The next big provider to cut costs was British Gas, who announced a 5% reduction to its gas prices, which comes into effect from the 27th February. Finally, energy giant Scottish Power followed suit with a 4.8% drop from Friday, 20th February.

Despite cuts from the big providers, it’s the smaller, challenger energy companies that are coming out at the top of the ‘best-buy’ tariff tables. Despite Npower’s announcement, the cheapest tariff available on the market is Extra Energy’s Fresh Fixed Price January 2016 v9, which was launched yesterday and costs, on average £914 a year, a saving of £412 on the average household energy bill for a medium usage home.

Jeremy Cryer, energy spokesperson at Gocompare.com, said: “Though a 5.1% drop in gas prices will be welcomed by Npower customers, it still begs the question of why the drop in wholesale gas prices hasn’t been passed on to households earlier, especially considering the winter season is typically the peak energy usage period. No doubt there will be some customers left frustrated that this reduction has taken so long to pass on, and that it is still paltry when compared to the reported drop in wholesale gas costs of around 20%.”

“The energy market has really picked up with new tariffs and price cuts being announced seemingly every day. Though it seems inevitable that the remaining two ‘big six’ providers, EDF and SSE, will finally announce cuts to their own gas prices, we’ve yet to see whether it will be enough to challenge the competitive tariffs that are being released with increasing frequency.”

All of the top ten cheapest dual fuel tariffs, including the Extra Energy Fresh Fixed Price Jan 2016 v9, the cheapest fixed term tariff on the market, are available through Gocompare.com’s energy comparison service.

For more information on switching energy supplier, read Gocompare.com’s guides, here: http://www.gocompare.com/gas-and-electricity/guide/.