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Npower cuts its gas prices, but experts slam 'trivial' reduction Npower cuts its gas prices, but experts slam 'trivial' reduction
(7 months later)
Energy firm npower is the latest of the “big six” to announce a cut in gas prices, with customers set to see bills reduced by an average of 5.2%.Energy firm npower is the latest of the “big six” to announce a cut in gas prices, with customers set to see bills reduced by an average of 5.2%.
Related: Outrage as loyal energy customers overpay by £300
The fall will see the typical gas bill for 1.2 million customers fall by £32 a year to £591. However, the cut will not come into effect until Monday 28 March, the day after British summer time begins.The fall will see the typical gas bill for 1.2 million customers fall by £32 a year to £591. However, the cut will not come into effect until Monday 28 March, the day after British summer time begins.
The price cut follows reductions of around 5% for customers on standard tariffs by E.ON, Scottish Power and SSE, who have all reacted to a fall in wholesale costs.The price cut follows reductions of around 5% for customers on standard tariffs by E.ON, Scottish Power and SSE, who have all reacted to a fall in wholesale costs.
Paul Coffey, npower’s CEO, said: “This cut in gas prices is welcome news for many of our customers. We have balanced the wholesale price fall against increases in the other costs we are charged.”Paul Coffey, npower’s CEO, said: “This cut in gas prices is welcome news for many of our customers. We have balanced the wholesale price fall against increases in the other costs we are charged.”
However, commentators criticised the “trivial” savings which they said did not reflect the fall in wholesale prices.However, commentators criticised the “trivial” savings which they said did not reflect the fall in wholesale prices.
Martin Lewis, founder of MoneySavingExpert, said: “So now the fourth of the big six sheep has bleated and followed the others in cutting prices.Martin Lewis, founder of MoneySavingExpert, said: “So now the fourth of the big six sheep has bleated and followed the others in cutting prices.
“Yet again, though, the amount is trivial – a reduction of £32 a year, just 5% on gas only, not electricity, and nothing close to the drop in wholesale prices. Energy firms must be whooping for joy that they can get away with such small cuts.”“Yet again, though, the amount is trivial – a reduction of £32 a year, just 5% on gas only, not electricity, and nothing close to the drop in wholesale prices. Energy firms must be whooping for joy that they can get away with such small cuts.”
Energy firms must be whooping for joy that they can get away with such small cutsEnergy firms must be whooping for joy that they can get away with such small cuts
Mark Todd, co-founder of comparison site energyhelpline, said the size of the cut was “very disappointing”.Mark Todd, co-founder of comparison site energyhelpline, said the size of the cut was “very disappointing”.
“Another day, another token price cut – this one to be enacted as Easter draws to a close. Also, nothing off electricity again,” he said. “Suppliers don’t appear to be passing on even half of the savings they are getting thanks to falling wholesale prices. Wholesale gas prices are down 51% since the last price rises, but domestic gas prices have only come down around 10% and wholesale electricity is down – yet these bills have not dropped at all.”“Another day, another token price cut – this one to be enacted as Easter draws to a close. Also, nothing off electricity again,” he said. “Suppliers don’t appear to be passing on even half of the savings they are getting thanks to falling wholesale prices. Wholesale gas prices are down 51% since the last price rises, but domestic gas prices have only come down around 10% and wholesale electricity is down – yet these bills have not dropped at all.”
The Competition and Markets Authority is investigating whether the energy market is working competitively. It recently delayed its provisional report on remedies to March.The Competition and Markets Authority is investigating whether the energy market is working competitively. It recently delayed its provisional report on remedies to March.