npower launches new online tariff

npower has launched ‘Sign Online 8’, it’s latest online energy tariff. Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “This tariff is highly competitive, so it’s great for competition in the energy sector. We’ve not had the best of summers and with autumn not far away, thousands of customers will soon be searching out the cheapest deals ahead of the winter months. This move by npower should prompt rival suppliers to lower their prices, just as people start to turn on their heating.

“While the ‘Sign Online 8’ can offer big savings, the cheapest tariff for the customer still depends on how much gas and electricity they use and which PES (Public Electricity Supplier) area they live in. Because of the way npower’s tariff is structured, households that have above-average energy consumption (for example large family houses) may benefit from the tariff. However, for lower energy users, it may not be the best deal. Also, because the tariff’s designed to attract new customers, npower only offers the cheapest rates to people outside its ‘host regions’ of Yorkshire, Northern and the Midlands.

"Because of these complications, anyone looking to save money on their household bills should use an energywatch-accredited price comparison service. Such services are guaranteed to be free and impartial and will take into account factors such as energy consumption and location to find the greatest possible savings. There are huge price differences between the various providers, but it’s up to the customer to be proactive and find out how much they could save by switching.

“With energy companies bombarding us with messages about their ‘standard tariff’ price cuts, it’s easy to forget that the real price war is being fought online. With all online tariffs, customers are able to take their own meter readings and enter them over the Internet, thus avoiding the problem of over-estimated bills. We always advise customers with Internet access to compare online tariffs. They are usually the suppliers’ cheapest deals and, because customers take their own readings, the bills are more accurate.”