Energy giant npower has announced a 5 per cent cut to gas prices for all customers on standard and capped tariffs from 1 February.
The energy giant will also waive cancellation fees for npower fixed-price customers.
Npower raised gas prices for their customers by 15.7 per cent in October last year.
This news follows gas and electricity price cuts by British Gas and other major energy suppliers SSE and EDF Energy this week.
Npower has 6.5 million residential gas and electricity customers throughout the UK.
Price cuts justified
Paul Massara, chief commercial officer at npower, said: “It's obviously no coincidence that several energy companies have announced price reductions this week and we do not apologise for joining them.
“We are now at a point where costs, at least in the short term, can justify a price cut and we want to make sure that npower customers always get competitive deals.
“Our reduction in prices means that npower will be cheaper than British Gas for the average dual fuel customer.
“As well as cutting prices we have decided for the next two months to waive cancellation fees for customers on fixed price contracts who may now want to move to a cheaper npower tariff.
“It remains my aim to get every npower customer on to the deal that’s right for them.”
Suppliers follow suit
On Thursday British Gas announced a 5 per cent cut to electricity prices with immediate effect and said the average electricity bill set to drop by £24.
On the same day SSE announced a price cut of 4.5 per cent on gas from 26th March.
And on Wednesday, EDF Energy became the first big six supplier to lower its utility prices this year when it slashed gas prices by 5 per cent on Wednesday.
British Gas tops best buy table
A survey of gas and electricity suppliers offering the cheapest prices in 2011 saw British Gas top the chart.
British Gas topped the tables 15 times last year, First Utility 12 times, EDF 10 times, E.ON eight times and Scottish Power four times over a period of 49 weeks according to the Confused.com study.
Lisa Greenfield, energy analyst at Confused.com, said: "Shopping around is often about the quality of a product as well as the price.
“But when it comes to energy it is the same gas coming through your pipes no matter which supplier you use which makes shopping around so important.
Shop around
“Of course in some cases there are added benefits such as boiler cover and some companies will have a better customer satisfaction rating than others.
“But when it comes to price you are buying the same gas or electricity so why would you want to pay more than your neighbour?"
To make it easy for customers to compare prices, Confused.com publishes a weekly energy best buy table of the cheapest energy suppliers.
