Powergen reduces energy bills

Powergen, the UK’s second largest energy supplier with six million customers, has said that it will reduce its energy prices from 30th April 2007.

Gas prices are set to fall by 16%, while electricity prices will fall by 5%, cutting £92 off an average household bill.

Karen Darby, CEO of SimplySwitch.com comments: “After months of falling wholesale prices, Powergen has at last followed British Gas and npower and cut its standard prices. Whilst any price cut is good news, customers have been paying through the nose for their energy while wholesale costs for suppliers have dropped by over 50%.

“Three major suppliers from the ‘big six’ have now dropped their energy prices. Our research shows that if an energy provider dropped its prices, 88% of consumers would expect their provider to do the same. Unless providers want to experience a mass exodus of customers to their competitors, we urge the remaining three providers not to wait, and pass these price cuts on to their customers now. Until they do, consumers are paying a premium for their energy at the most expensive time of the year.

“Powergen has also reduced rates on its online tariff. From today, it is one of the most competitive online tariffs currently available. However, customers in Powergen’s host regions in the East Midlands, the North West and East Anglia won’t benefit from the most competitive rates.

“Those on Powergen’s Staywarm tariff will only see their bills drop by 5% in the short term. Whilst Staywarm offers peace of mind, as energy prices are falling, customers on the tariff may find there is a more competitively priced deal available elsewhere.”

Powergen last increased its prices in August 2006 when gas bills increased by 18.4% and electricity bills increased by 9.7%, adding £140 to an average Powergen customer’s energy bill.