Npower has become only the second supplier to reduce its standard tariff, cutting gas prices by 16 per cent and electricity prices by three per cent, after British Gas cut prices for standard energy tariff customers recently.
Npower helped instigate the current price war by becoming the first energy provider to reduce prices on its online tariff, according to Karen Darby, chief executive of price comparison and switching service SimplySwitch.com – but the savings it is now offering go further with cuts to all customers on the standard tariff.
The cuts are seen as a welcome reprieve for customers subjected to unjustifiably high prices since wholesale gas prices fell last summer, with particular criticism of npower for raising prices in October, adding £131 to the average household bill.
Npower's strategic manoeuvre comes shortly after British Gas reduced rates on its Click Energy 2 gas tariff, and makes it the cheapest supplier on the market.
But in the current rapidly-changing energy price climate, that's a position it may not hold onto for long.To compare energy and gas prices, click here.
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