Npower has announced it is cutting gas prices by 5%, making it the fourth major energy company to announce a price decrease this week.
The cut applies to customers on Npower’s standard and capped tariffs and will come into effect on 1 February 2012.
Npower says it will also waive cancellation fees for customers in fixed rate contracts who want to move to another Npower deal.
According to Npower, the price cut will reduce an average customer’s bill by around £38 a year. Which? recommends you always compare energy deals to find out which is best for you.
Energy price cuts
The move follows yesterday’s announcements from British Gas and Scottish and Southern Energy (SSE) that they would drop energy prices for some of their customers, and a similar pledge on gas prices from EDF Energy on Wednesday.
- British Gas: electricity prices cut by 5%, effective immediately
- Scottish and Southern Energy: a 3.8% reduction in gas prices from 26 March
- EDF Energy: a 5% drop in gas prices from 7 February
Smaller energy companies Co-operative Energy and Ovo Energy were the first to announce price decreases earlier this winter. The cuts follow a fall in wholesale energy costs.
Energy company service
Price isn’t the only thing to consider when choosing an energy company. Npower came bottom of the recent Which? energy company satisfaction survey which asked customers to rate their experience of their gas and electricity supplier.
Read the results of our best and worst energy supplier survey to find out how Npower’s score of 41% compares to 15 other energy companies, including small and large suppliers.
Market must change
Which? energy policy advisor James Tallack said: ‘While any drop in the current sky-high price of energy is to be welcome, suppliers passing on savings to consumers is the very least we’d expect from a competitive market.
‘But restoring confidence in this market goes beyond cutting consumers’ bills. It’s also about greater transparency on the relationship between our bills and the wholesale price of energy, so consumers can have confidence that what they’re being charged is fair, and reforming the mass of unnecessarily complex energy tariffs that prevent people from finding the best deal at a glance.’