Consumer: Energy supplier looks set to slash gas prices

Another of the country's Big Six energy suppliers has announced price cuts.
Another of the country's Big Six energy suppliers has announced price cuts.
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Another of the country’s Big Six energy suppliers has announced a cut in its gas prices in a move benefiting about 1.3 million customers.

Npower, which is part of German utility company RWE, said its average tariff will come down by 5.1 per cent from February 16, making it the largest percentage price cut in the recent wave of announcements from the sector.

British Gas is cutting prices by 5 per cent from February 27, Scottish Power by 4.8 per cent from February 20 and E.ON has taken 3.5 per cent from bills with immediate effect.

The industry-wide reduction in bills reflects the falling cost of energy on wholesale markets, although companies have come under fire for being too slow in passing on the savings.

Recent figures from industry regulator Ofgem show that wholesale gas prices are down 19 per cent on last winter.

RWE Npower chief executive Paul Massara said: “The announcement means we can get the benefits we are seeing in the wholesale market to our customers pockets as soon as possible.

“We have balanced this wholesale price fall against increases in the other costs we are charged.

“If there are further falls in wholesale prices, we will keep these under review to see if we can cut further.”

Energy secretary Ed Davey said: “Competition is driving down prices and it’s consumers that will benefit.

“There’s now even more pressure on the remaining energy companies to follow suit and cut their prices.”

Martin Lewis, founder of independent consumer website, said he was concerned that the recent price cuts will give people a false confidence that they are on a good deal.

Mr Lewis warned consumers: “The urgent warning is for everyone to do a comparison to check if they’re overpaying and which their cheapest is.”