Energy News

Npower now has cheapest energy deal for most regions

Monday, 14 December 2009

By Hazel Cottrell - hazel@consumerchoices.co.uk

New online energy tariffs from Npower are the cheapest available to most homes, but they come with a catch.

Npower is now the cheapest energy supplier in 11 out of the UK’s 14 distribution areas, as a result of launching two new energy tariffs.

To get its new deals, Web 17 and Sign Online 17, customers must manage their accounts online and pay by monthly direct debit.

They are variable-rate tariffs but come with early termination fees of £20 per fuel, for customers who switch away before 31 March 2011.

Chris Eagle, commercial manager at Energychoices.co.uk, said: “Charging customers exit fees is becoming a common practice among energy suppliers, as they try to prevent their customers switching away.

“However, these fees are normally applied to fixed or capped tariffs, where customers know what price they are locking themselves into.

“The fact that Npower is applying these fees to a variable-rate tariff could signal a worrying new trend.”

Npower’s new tariffs are the cheapest available for average customers in all of the UK’s energy distribution areas except Northern Electric and Yorkshire Electricity, where OVO Energy is cheapest and East Midlands Electricity, where First:Utility is cheapest.

Web 17 is only available to new customers, whereas Sign Online 17 is available to new and existing customers, as long as whatever fuels are being transferred are all with Npower already.