Energy Bills: Npower Latest To Cut Gas Prices

Energy firm npower is the latest of the "big six" to announce a cut in gas prices, with customers set to see bills reduced by an average of 5.2%.

Scottish Power announced it is to cut its standard domestic gas prices by an average of 5.4% from mid-March.

Npower, the British retail division of RWE, of Germany, said yesterday that it was reducing its gas charges for 1.2 million customers on its standard tariff starting from March 28, a week after the end of the peak winter demand season.

However, critics said the scale of the cuts are still too small, and questioned why npower is waiting until after Easter to enact price drops.

As with the other suppliers, Npower is blaming it on the fact that there are other costs to bear in mind as well as wholesale costs, with their statement reading: "Our prices are coming down in line with our overall costs".

The cut from npower follows similar cuts from rival Big Six providers.

Big suppliers followed each other closely with past price cuts and increases, adding to concern that there isn't enough competition.

Either way, Npower reckon that this is going to save the average customer of theirs, £32 per year, which isn't a wild amount of money, but it is better than a kick up the hole.

Major energy markets argue their prices are competitive and their investment costs are high.

Gillian Guy, chief executive of Citizens Advice, said: "The price drop is a step in the right direction for the sector but energy suppliers shouldn't just draw a line in the sand here".