npower follow “new season sale” strategy with price cut says Gareth Kloet, Head of Energy at Confused.com

Publication Date: Tuesday, March 09, 2010

"npower are the latest to show their hand with reductions in domestic gas prices for approximately 2 million standard domestic gas customers averaging 7% or £50 for the average gas customer when cuts will take effect on 26 March 2010.

"This is yet another example of energy companies having a "spring sale", the equivalent of discounting winter clothing at the end of the season - it just is too little too late.

"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.

"With over 2 weeks before any of these changes become effective, both EDF and Scottish Power still have the opportunity to steal the limelight with a last mover advantage, it would be good to think that they will offer discounts to apply immediately - honourable but unlikely."

* ‘Big Six' current standard gas tariffs 

Calculations made assuming current average standard gas tariffs and OFGEM medium consumption - 20,500 kWh.  Assumes bills are paid by monthly direct debit.

Best tariffs versus standard tariffs

Calculations made assuming dual fuel national average price and OFGEM medium consumption - 3,300kWh electricity, 20,500 kWh gas.  Assumes bills are paid by monthly direct debit.

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