npower today announced a straightforward 5%(1) cut to gas prices for all customers on standard and capped tariffs (2) from 1 February. npower will be the first major energy supplier to implement a reduction in gas prices. This reduction in the cost of the primary heating fuel will allow customers to get real benefit before the spring.
Paul Massara, chief commercial officer at RWE npower, said:
“It's obviously no coincidence that several energy companies have announced price reductions this week and we do not apologise for joining them. We are now at a point where costs, at least in the short term, can justify a price cut and we want to make sure that npower customers always get competitive deals. Our reduction in prices means that npower will be cheaper than British Gas for the average dual fuel customer (3).
“As well as cutting prices we have decided for the next two months to waive cancellation fees for customers on fixed price contracts who may now want to move to a cheaper npower tariff - although the longer term outlook cannot be predicted, so existing fixed price deals may still be an attractive option.
“It remains my aim to get every npower customer on to the deal that’s right for them”
Notes to editors
(1) 5% cut across both primary block and follow on rate - all customers get the benefit regardless of level of usage.
(2) Based on Ofgem standard annual average consumption of 16,500kWh gas. Prices averaged across Britain and include VAT. Includes Receipt of Bill, Direct Debit and prepayment customers.
(3) Cheaper than British Gas across all payment methods for dual fuel based on Ofgem standard average annual consumption of 16,500kWh gas and 3300kwh electricity. Prices averaged across Britain and include VAT.