nPower is the latest energy company to reduce its prices as it lowers its standard gas prices for two million domestic customers.
nPower has announced around a 7% reduction is standard gas prices for its’ domestic customers who will save £50 per year, on average when the cuts come into effect on March 26th.
In a statement on its web site, nPower claim that “We are able to reduce our prices now as the cost of the gas that nPower purchased in the past can now be used in today’s prices. We are now cheaper than British Gas for gas on a national average basis of all payment methods at an average consumption level of 20,500 kWh.”
Whilst acknowledging that this price reduction is a step in the right direction and forms part of a “spring sale” in energy prices across the industry, Confused.com are taking a more critical view of the current round of energy price cuts, particularly as the price falls do not take effect until the end of the month, when the weather will presumably become warmer.
“It’s hard to believe that these huge companies are able to advertise the fact that they are cutting prices, when they are failing to actually proceed with the cuts until sometime later – when it’s likely to have less benefit to the customer although with both Scottish and Southern Energy and Eon both announcing price cuts toward the end of the month, nPower have been able to utilise a late mover advantage cutting prices by a larger percentage and a few days sooner than its nearest competition.”
“With the end of March proving to be a critical time when it comes to price drops, we would encourage customers to read their meters to ensure they only pay for the energy that they have used and at the rates applicable.”, comments Gareth Kloet, Head of Energy at Confused.com.
Consumers should also ensure that they are getting the best deals, and should consider dual fuel price plans as it is easy to switch energy suppliers.
Moneysupermarket.com is also taking a sanguine view of this round of price cuts, as Scott Byrom, utilities manager at moneysupermarket.com comments: “”Where’s the price war we were all hoping for? It’s not a ‘price war’, it’s more like a ‘price fisticuffs’.”