Tuesday, 09 Mar 2010 14:20
Npower has become fourth energy supplier to announce it will cut household bills
By Sarah Garrod.
Npower has become the fourth energy company to cut domestic energy bills, reducing gas by seven per cent from March 26th.
The energy supplier said the changes would affect around two million standard domestic gas customers and would equate to a saving of around £50 a year.
The firm said that Monthly Direct Debit (MDD) gas customers will receive £50 a year discounts, up from £20 and MDD electricity customers will receive £40 for their annual discount, this is equivalent to an additional 4.8 per cent reduction on their annual electricity bill.
Kevin Miles chief executive of npower retail said: "We always aim to offer competitive prices to our customers and we have lowered our gas prices although our profits halved in 2009. The combined profit from supplying nearly 6.8 million accounts and operating nine power stations was equivalent to just 9p a day for each customer account."
Energy companies have come under pressure to pass on supply savings to their customers, particularly following a harsh winter which has seen more people turn up their heating. British Gas dropped its gas prices by an average of seven per cent at the start of February, followed by Scottish and Southern Energy, which will cut its standard household gas prices by an average four per cent at the end of March.
On Monday, E.On said it would reduce its prices by six per cent.
Thomas Lyon, energy expert at uSwitch.com, says: "Consumers have been waiting throughout winter and now we have seen three price cuts in the space of six days. This is great news for consumers as suppliers seem to be clambering to rejoin the pack and to bring their prices back in line with those who have already made the move.
"Today's move is interesting because it is the first supplier this year to not just focus on gas but to also offer some relief to electricity customers. This doesn't come in the shape of a full-scale price cut though, but through a boost to the discount available to single fuel direct debit customers."