moneysupermarket.com comments on launch of 'npower tracker'

Commenting on today’s launch of ‘npower tracker’, Paul Schofield, head of utilities at price comparison website moneysupermarket.com, said: “npower’s pilot scheme will review energy bills every quarter, meaning customers may see their prices rise or fall in line with wholesale prices.

While these customers would benefit from falling wholesale energy prices, it is a risky move for those who are financially stretched and cannot afford the uncertainty of fluctuating costs.

“For those who can withstand future highs and lows to their bills, it should give them some confidence that their provider tracks market prices rather than having costs fixed towards the top of the scale in a falling wholesale prices environment. It’s worth noting that energy providers including npower have been extremely slow to pass on wholesale price falls which have already happened, so launching this deal now means customers may already have missed out on some substantial savings to be had by tracking the wholesale market.

“With wholesale gas and electricity prices tumbling since last summer, there is no reason why all energy companies shouldn’t slash their domestic prices immediately. Instead, energy prices have continued to rise, with an average 40 per cent rise for gas and an average 27 per cent rise for electricity bills since the beginning of 2006. Our research shows average annual gas and electricity bills now cost as much as £631 and £377 respectively.

“There are some steps consumers can take to cut the cost of their energy bills. For example, someone on a standard British Gas tariff (dual fuel) paying £1,056 on average per year could save £144 annually by swapping to Scottish Power. Opting for an online tariff could save as much as £200 per year.”

moneysupermarket.com is making a stand to help these people ditch their expensive power companies and get the cheapest energy deal by offering £30 cash-back to all customers swapping to a dual fuel tariff through its service. Those not going for a dual fuel tariff but making a switch will benefit from a single £17.50 payment.