Energy prices to be cut by npower

A fourth energy supplier is to reduce its prices in a bid to undercut its rivals.

As of March 26th, npower's gas prices will be reduced by 7%, while direct debit discounts will also be introduced.

It is also the only supplier which has opted to help out electricity-only customers, with the offer of discounts equating to a 4.8% reduction in prices.

Thomas Lyon, Energy Expert at uSwitch.com, commented: "Now that four of the big six have moved we can also see a clear trend emerging with gas price cuts coming in at around 6% or £50."

He emphasised that this is the third price cut in the space of six days, which is good news for energy customers.

First:Utility, Scottish and Southern Energy and E.ON have already lowered their costs, with each trying to beat the reduction of the previous.

E.ON's price cuts, announced earlier this week, will come into effect on March 31st, with direct debit customers receiving a £42 saving.

Posted by Martin Ellis