npower announces simpler tariffs and end of complex two-tier rate

npower has announced it is to simplify all its standard tariffs, bringing to an end the current complex two-tier tariff structure. From 1st May 2013, npower tariffs will have a single rate for each unit of energy used. Customers will also pay a fixed standing charge to cover the cost of bringing gas and electricity to their door.

Paul Massara, Group CEO, RWE npower said: “At the end of January I set out our goal to focus squarely on customers and to make the company number one in the industry for customer experience by 2015. We are responding to customers who want clear and simple energy tariffs. Today’s announcement is the first step on the journey. From today, we will write to our customers explaining the changes and what it means to them. Having a consistent format across all energy suppliers will help customers make the choice that is right for them.

“Getting it right for our customers is the driving force behind all that we do, now and in the future.”

Some of npower’s gas tariffs have seasonally weighted elements. This feature will disappear when the standing charge is introduced and npower will credit customer accounts if necessary to ensure a fair changeover. This approach has been endorsed by Consumer Focus and Ofgem has been informed.

The introduction of a simple standing charge is the first step in a journey which later this year will see npower reduce the number of its standard tariffs and replace them with a small number of simple tariffs that meet new regulatory guidelines.

npower will be among the first of the major energy suppliers to introduce simpler tariffs for all customers on standard tariffs.