Major energy supplier announces price cut - 17/03/2009

The last of the UK's six major energy companies has announced a price cut in order to help consumers access cheap energy.

Npower will reduce its electricity prices by eight per cent from the end of March, providing its customers with an annual average saving of £43, although gas prices will remain static.

Prices from Npower rose by 14 per cent during the autumn of last year, but chief executive Kevin Miles said wholesale prices remain higher than they were two years ago.

Mr Miles said: "We will continue to keep our costs and prices under review to ensure that we remain competitive and give our customers value for money."

The company says that many customers were protected from wholesale gas price rises in late 2007, something which it says justifies now keeping the cost of gas unchanged.

Although all the UK's major suppliers have announced price cuts, they have all drawn criticism for failing to implement more substantial reductions and for not taking action during the freezing winter months.

Mark Todd of energyhelpline.com said: "Npower is the last of the Big Six energy giants to cut its prices. It has announced a cut of eight per cent for electricity providing an average annual saving of £43 on electric bills, but no change in gas prices. For a typical dual fuel customer it will represent a saving of just three per cent."

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