Energy News

Npower cuts gas prices to trump British Gas

Tuesday, 9 March 2010

By Daniel Barnes- daniel@consumerchoices.co.uk

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Npower chops 7% off its gas prices and increases the discount if you pay by direct debit.

Npower is cutting 7% off its gas prices, the latest in a set of cuts by the major energy firms. It claims its gas prices are now cheaper than British Gas.

Prices for “single fuel” gas customers will fall 7.8% and dual fuel customers’ prices will drop 7.1% from the 26 March.

The firm is also increasing the annual discount for customers paying by monthly direct debit from £20 to £50. <->

Kevin Miles, Npower retail chief executive, said: "We always aim to offer competitive prices to our customers and we have lowered our gas prices although our profits halved in 2009.”

The price cut follows similar moves for three of Npower’s main rivals.

In February British Gas cuts its gas prices by 7%. Yesterday, E.ON reduced its gas prices by 6% and last week Scottish and Southern Energy trimmed its gas prices by 4%.

Chris Eagle, commercial manager at Energychoices.co.uk, said: “Just as winter passes, the energy firms are cutting their gas prices.

“The small cuts in annual bills are welcomed, but it is still worth searching out a new deal to reduce your energy bills further.”

He added: “To find the best deal, you need to sign up to an online dual gas and electricity deal and make sure you pay by monthly direct debit.”