The price cut will see the average npower dual fuel energy bill drop by £33 per year, from £1,332 to £1,299. An additional £12 rebate will be added to bills later in the year, as part of the government led cuts.
The move is far from wiping out the 10.4% price hike which the supplier implemented in December 2013. Customers will still find themselves paying an extra £79 on average, in 2014.
Households disappointed by level of cuts
Research carried out by uSwitch found that UK households have been unimpressed with the energy price cuts. According to the survey, 66% are disappointed with the level of the cuts and 75% expect energy prices to rise again this year.
SSE customers will have to wait until the end of March to see reductions.
Cuts were a long time coming
Director of Consumer Policy at uSwitch Ann Robinson said: “The levy reductions are filtering through to household bills, but for many consumers it’s too little, too late. While British Gas customers benefitted from the 1st January, npower’s customers will only now feel some respite while SSE customers still have to hold on until the end of March.
“This hasn’t just taken the sheen off what should have been a good news story for consumers, but it has also meant many missing out on a potential lifeline when it comes to this winter’s heavy fuel bills”.
‘Almost three quarters of households have gone without heating this winter’
“Almost three quarters of households (73%) have gone without heating at some point this winter to keep energy costs down, while over a third of people (36%) say that cutting back on energy has affected their quality of life or health. For these a timely reduction, no matter how small, could have made a significant difference”, added Robinson.
“However consumers can, and should, also help themselves. There is almost £300 difference between the cheapest and most expensive tariff on the market, which many consumers could easily enjoy simply by ditching old-fashioned and expensive big six standard tariffs and moving to a ‘best buy’ deal. This saving far outstrips the levy reductions and adds up to a significant cut to the average household energy bill – I would urge consumers to take advantage and to shop around now.”
Average big six energy bills:
|January 2013||31st December 2013||March 2014|
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. *£1 difference due to rounding.