npower reduces its standard tariff

npower has followed British Gas lead and reduced its standard energy prices. From 30th April 2007, npower will reduce its prices by 16% for gas and an average of 3% for electricity, cutting approximately £141 off a typical annual energy bill.

Karen Darby, CEO of price comparison and switching service SimplySwitch.com comments: “npower was the first energy provider to reduce prices on its online tariff and since then others have followed suit. However, up to now, only British Gas has reduced its prices for standard customers.

“While these price reductions are welcome, as wholesale prices have halved in recent months, we would like to have seen a bigger cut, with immediate effect. Consumers have to wait more than two months before they see any benefit, while suppliers have profited from reduced wholesale prices since summer 2006.

“Even though some providers have now dropped their prices, customers need to be vigilant to make sure they are on the best deal available. Switching shows energy companies that consumers are not prepared to put up with rip off prices.

“Although npower has reduced its standard tariff, if you are an npower customer in one of its host regions of Yorkshire, Northern or the Midlands, then there will be more competitively priced electricity products available. Dual fuel is not always the best option and consumers could be better off switching to the cheapest suppliers individually for gas and electricity.”

Npower last increased its prices on 1st October 2006 when gas customers saw their bills increase by 17.2% and electricity customers by 9.9%, adding £131 to an average household bill.