Energy News

Npower steals British Gas ‘cheapest’ crown

Monday 20 July, 2009

By Becca Talbot becca.talbot@consumerchoices.co.uk

Npower is taking on British Gas in a fight to be the UK’s ‘cheapest’ energy supplier with two new energy tariffs.

German energy giant Npower (www.npower.com) launched two new online tariffs today, making it the cheapest energy supplier for “low” and “high” users.

British Gas (www.britishgas.co.uk), the UK’s largest supplier, still offers the cheapest tariff for an “average” household, but only by a few pence following the launch of Npower’s Sign Online and Web 16 tariffs.

Scott Byrom, utilities manager at moneysupermarket.com said: “These offerings change the landscape for UK bill payers - it is good news to see two new products entering the utilities market, especially ones that can compete with the likes of British Gas WebSaver 3.”

The price war between the “big six” has bought the average dual fuel online energy tariffs bill down to £1,018 a year - a difference of £42 when compared to the average standard energy plan.

The Npower Sign Online 16 tariff is now the cheapest in all 14 UK regions for “low” users - typically those who live alone or in flats - with an average annual bill of £506. The supplier also takes the title of cheapest tariff for “high” energy users in 12 of the 14 regions with its Web 16 tariff, which costs an average of £1,385 a year.

Both tariffs come with no exit penalties.

Chris Eagle, commercial manager at EnergyChoices.co.uk said: “The difference between the average bills between regions, and the difference between the bills of a household with ‘high,’ ‘average’ or ‘low’ energy consumption really highlight the importance of finding the best tariff for you.”

Eagle advises customers who are worried about the cost of their gas and electricity to follow some simple steps to reduce their energy bills:

• Compare energy prices
• Go paperless, with online account management
• Avoid estimated meter readings
• Pay your energy bills by monthly direct debit