npower announces gas and electricity price reduction
Each of the big six gas and electricity providers have committed to lowering prices following government cuts to green levies
npower today became the last of the big six to announce it would be lowering gas and electricity bills for customers following government-led cuts to green levies.
The German owned energy provider has said that any customers who saw their prices increase in December, due to npower’s 10.4% price hike, will see their bills fall by about £50 per year.
Customers on either a fixed or variable dual fuel or electricity only plan which did not go up in December will receive a £12 discount on their energy bills in autumn as part of the government’s universal rebate.
The main cuts will be effective as of the 28 February 2014 with a further £12 removed in autumn.
It’s is worth noting that although prices are being reduced by each of the big six (with the exception of EDF Energy and E.ON which factored cuts into their initial price increase), the cuts will not wipe out winter price rises and many will still be paying close to £60 more this year.
‘Typically, this will mean a £50 annual reduction for the average dual fuel customer’
Paul Massara CEO RWE npower said: “Every customer who saw their prices go up in December will receive a reduction to their annual energy bill. Typically, this will mean a £50 annual reduction for the average dual fuel customer when the Government’s one-off universal rebate is included. All electricity customers whose prices did not increase in December will receive this £12 universal rebate.
“This reduction is a reflection of the recent review of two government policies and their impact on household energy bills and it is a welcome start. The natural next step would be to review all the impact of all policies that add to business and household energy bills. Tackling the realities of energy costs is a sensible long-term solution to ensure maximum benefit at minimum cost for the consumer.
Massara added that npower was not planning to raise energy prices before spring 2015, unless there were changes in wholesale energy costs or other factors out of the company’s control.