Powergen reduces prices on its ‘energy guarantee’ tariffs

Powergen has said that it will reduce prices on its energy guarantee tariffs.

Existing customers will see their bills drop from today and the new prices will be available for new customers from tomorrow.

These tariffs are available as single electricity, single gas and dual fuel and Powergen promise that they will be cheaper than British Gas standard quarterly billed tariff until 1 September 2008.

Karen Darby, founder of SimplySwitch.com comments: “Not to be outdone by British Gas, Powergen has maintained its commitment and announced a further cut that will benefit new and existing customers on its ‘energy guarantee’ tariffs.

“While this price cut is good news for those on the tariff, consumers should note that the Powergen guarantee products compare against one of British Gas’ more expensive tariffs. While they do offer a saving against that tariff, there are many more competitively priced products available.

“Paying by direct debit or opting for an online tariff is invariably cheaper and we would urge consumers to shop around.”

Prices on Powergen’s standard tariff will fall by 16% for gas by 5% for electricity from Monday 30th April, cutting £92 off an average household bill.

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.