As wholesale gas prices soar, npower cuts online price

Despite headlines warning that wholesale gas prices are on the brink of a record £1 a therm, npower has cut the price on its online dual fuel energy plan - Sign Online 11 - by £16, from an average of £878 to £862.

New and existing customers will benefit from the lower price.

The move will make the supplier's online plan one of the most competitive in the market, providing potential reprieve from the credit crunch for consumers. However, while welcoming the price cut, experts warn that those seeking longer term security may do better moving to a fixed price energy plan.

Tim Wolfenden, Head of Home Services for uSwitch.com, comments "At a time of mounting energy prices and predictions that household energy bills could hit £1,327 as early as this year, a price cut is a bolt from the blue. But today's move provides consumers with a much needed glimmer of hope.

"npower's move shows that we still have a competitive market and that npower is keen to position itself well within it. This is all about goodwill and winning over new customers. Online plans are ideal for deal seekers, for those who are happy to be on the best deal today and take their chances with the market and prices in the future. For those who are already struggling to meet household bills or who have grave concerns about the impact of energy prices in the future, fixed price energy plans would be a better option as they offer longer-term security.

"The main thing for consumers to take from this is that even though energy prices are soaring there are still options. The key thing is to choose an energy plan that suits your needs and budget and make sure you are not paying over the odds - prices will still go up, but you can limit the impact by making the right choices today."