Business

Npower to cut gas price by 5.2%

Npower logo Image copyright PA

Npower has become the fourth major UK energy supplier to announce a reduction in its gas price - with a 5.2% cut taking effect on 28 March.

The date of the change is likely to bring renewed criticism that prices are cut only towards the end of the coldest months.

The move will mean a £32 average annual cut to customers on a standard domestic gas tariff.

Npower said the fall would benefit about 1.2 million customers.

Paul Coffey, chief executive of Npower, said: "We have balanced the wholesale price fall against increases in the other costs we are charged."

The move follows announcements by E.On, which cut its gas prices by 5.1% on 1 February, Scottish Power, which will cut its gas tariff by 5.4% on 15 March, and SSE which will introduce a 5.3% cut from 29 March.

Some commentators point out that these types of "standard" tariff are among the most expensive, so there is still benefit in shopping around.

"E.On, SSE, Scottish Power and Npower customers with typical usage on standard tariffs will still be paying at least £1,050 a year, after the cuts, and those from other firms even more. Yet the market's cheapest tariffs for switchers are under £770 a year on the same usage," said Martin Lewis, founder of Money Saving Expert.

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