npower is expected to unveil gas and electricity price reductions this week

The energy supplier will be the last member of the big six to unveil price changes following government led cuts to green levies

npower

Cuts will still see Brits paying significantly more for gas and electricity, following winter price rises

The German owned energy company is likely to reveal a 2.6% price cut for customers at some point this week, according to The Daily Mirror.

The cuts will see customers charged about £50 per year less for their gas and electricity and are a direct result of the government reducing green levies and a restructuring of the Warm Home Discount, which will save consumers a further £12.

Customers still worse off after winter price rises

Despite this round of cuts, consumers will still find themselves paying more for gas and electricity this year as the winter price rises were significantly higher than the recent reductions.

Average household energy bills:

Supplier

Pre-hike bill

Post-hike bill

Hike effective

Bill after levy reduction

Cut effective

British Gas

£1,191

£1,306

23/11/2013

£1,265

01/01/2014

EDF Energy

£1,190

£1,237

03/01/2014

£1,237

N/A

E.ON

£1,226

£1,240

18/01/2014

£1,240

N/A

npower

£1,220

£1,332

01/12/2013

 £1,294*

TBC 2014

ScottishPower

£1,230

£1,325

06/12/2013

 £1,284

31/1/2014

SSE

£1,211

£1,304

15/11/2013

 £1,266*

March 2014

Average

£1,212

£1,291

£1,264

Source: uSwitch.com

Based on a medium user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. *Based on DECC’s calculation that reductions will be worth £38 on average with an additional £12 rebate being passed directly to consumers in Autumn 2014.

npower raised its gas and electricity prices by 10.4% on 1 December 2013.

All of the big six will have announced cuts

Should npower announce cuts this week, each of the big six energy suppliers will have pledged to cut prices following the reduction in green levies.

ScottishPower announced its own price reductions yesterday and said they would be implemented as of the 31 January 2014. British Gas has already lowered prices for its customers and SSE will be cutting customer bills in Spring this year.

Both EDF Energy and E.ON had already taken the cuts into consideration when they announced their own winter price rises.

Read more

How do government-led price reductions affect energy bills?

npower to pay £3.5m penalty to vulnerable consumers

Updated – ScottishPower announce £54 reduction for dual fuel customers

Post tags:

Join the conversation

  • goldenblls

    So really, customers are better off sticking with ‘fixed tariffs’ even with these price cuts? Hardly seem worth them mentioning the price reductions at all.

Categories