Npower’s new tariff indicates a 3% drop in energy prices in under a month

Npower has launched a new tariff which is now the second cheapest short fix for medium energy users.

Npower’s Online Price Fix January 2016 tariff will cost the average householder £968.15 a year. The new tariff costs around 3% less than the Npower Online Price Fix November 2015 deal it replaces, which cost an average householder £1,000 a year. The Npower Online Fix November 2015 tariff was launched less than a month ago.

Consumers choosing this tariff will see their energy prices fixed until 31st January 2016. However, unlike all of the other tariffs which make up the current top ten best buys, there’s no early cancellation fee if the customer decides to switch to a better deal during the fixed period.

Although First Utility remain at the top of the best buys with their iSave Fixed v37 March 2016 paperless tariff, Npower’s new tariff would actually be cheaper for average users in two transmission areas.

For example, an average dual fuel user in the Manweb area will pay £994.90 a year on the First Utility deal compared to £987.11 a year on the new Npower tariff. Similarly, average users in the Norweb area will pay slightly less on the Npower deal as well.

Average prices by region for current average usage figures i.e. gas 13,500 kWh per annum and electricity 3,200 kWh per annum, dual fuel, and payment method is monthly direct debit.

Jeremy Cryer, energy spokesperson at Gocompare.com, said: “The fact that this latest tariff from Npower costs around 3% less than the tariff it replaces; which itself was launched just three weeks ago; is a good indication that lower wholesale energy prices and increased competition from smaller providers is pushing bills down.

“This tariff will also be attractive to those who feel that energy prices could fall further over the next year, as having no early cancellation charge means the customer can jump to a better deal without penalty even before the end of the fixed period. With other providers charging customers up to £30 per fuel to do the same, this Npower tariff is a good combination of competitive pricing and flexibility.

“Competition in the short fix market is intense with the difference between the average best buy tariff and the fifth-placed deal being just £40 a year, or less than £1 a week. However, consumers should not take it as gospel that the ‘best buy’ tariff will be the best deal for them. Our analysis has shown that a customer’s geographic location is a significant factor in getting the best deal, so it’s essential that they compare energy tariffs based on where they live and their usage. That is the only way for consumers to get a true indication of the best tariff for them.”