Average Npower customer to save £50 following price changes


Updated on 08 January 2014 | 0 Comments

Npower becomes the last of the Big Six to pass on savings to its customers.

Npower is the last of the Big Six energy providers to announce a reduction to its winter price hike. It will be reducing the increase by 2.6%, or £38. There will also be a £12 rebate, taking the saving up to £50 for the average customer.

It will affect all customers whose bills went up in the December price rise.

Npower customers

Dual fuel customers will see a fall of 2.6% to their annual bills from 28th February, including those on discounted fixed-term tariffs. But given that prices went up by 10.4% on 1st December, overall prices are still rising significantly.

The company has decided to pass on all of the savings it’s made from changes to Government green levies. In December the Government announced it would reduce these taxes. Now all six of the major energy suppliers have passed this fall onto customers in one form or another.

It says 2.6 million will see their bills fall by an average of £50, made up of the price fall and a £12 Government-funded rebate. A further 500,000 who are on fixed price tariffs will just receive the electricity rebate. The rebate will be applied in the autumn.

British Gas and SSE are the only other two companies to apply the fall in prices to all customers, whether on variable rate and fixed rate tariffs.

Paul Massara, CEO for npower, dubiously promised not to increase prices before spring 2015 “unless there are increases in wholesale energy costs or network charges”.

He said: "This reduction is a reflection of the recent review of two Government policies and their impact on household energy bills and it is a welcome start. The natural next step would be to review all the impact of all policies that add to business and household energy bills.

“Tackling the realities of energy costs is a sensible long-term solution to ensure maximum benefit at minimum cost for the consumer.”

Compare energy tariffs with lovemony.com

Switch and save money on your energy bills

It’s impossible to avoid rising costs when it comes to energy bills, but you may be able to save some money by switching providers. If you’ve not done it in a while you could save an average of £300 per year.

Right now the cheapest tariff comes from First Utility for £1,037 per year, which is £286 cheaper than the average bill.

Supplier

Tariff

Average cost

Saving vs typical bill*

First Utility

iSave Fixed v14 July 2015

£1,037

£286

Ovo

New Energy Fixed + Ovo Just Reward

£1,042

£281

Green Star Energy

No Worries 24 Months Fixed Version 1311

£1,061

£238

Co-operative Energy

Fixed Price July 2015

£1,077

£229

Scottish Power

Online Fixed Price Energy February 2015v3

£1,081

£218

* Saving calculated against an average bill of £1,323 Source: Energyhelpline. 07/01/13

Compare energy tariffs with lovemoney.com

More on energy prices:

Scottish Power cuts energy bills by 3.3%

SSE confirms 3.5% bill reduction

Alternative energy-saving techniques: will they save you money?

How to complain about your energy supplier

npower to pay £3.5 million to vulnerable customers following sales investigation

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