Money News
Britain's largest electricity supplier, npower, has announced gas price cuts of 16% for its 6.8 million residential customers from April 30th.
It is also introducing an extra annual discount for its monthly direct debit dual fuel customers, giving a total discount of £80 and so increasing their gas price drop up to 18%. In addition, the firm's electricity prices are decreasing by an average 3% across the country.
npower's move comes in response to British Gas's recently announced price cuts that will see improved tariffs from next month. It also confirms that energy suppliers are now in the throes of a price cutting war - Powergen and Scottish & Southern Energy having also recently indicated price reductions. Expectations are that more providers will follow. Powergen it should be said, has yet to go into the specifics on pricing.
The price cuts now being seen in the energy sector should come as no great surprise, given the price of wholesale gas has been falling since last Summer.
Also likely to have forced suppliers into action was the recent warning from industry regulator, Ofgem, that failure to pass on wholesale price cuts could result in official sanctions.
19 February 2007 © Moneyextra.com
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