npower has become the latest of the Big Six to announce a price cut. From 1st February it will cut its domestic gas prices by 5% for customers on standard and capped tariffs.
Announcing the changes Paul Massara, chief commercial officer at RWE 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.
“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 – although the longer term outlook cannot be predicted, so existing fixed price deals may still be an attractive option. It remains my aim to get every npower customer on to the deal that’s right for them”
It joins EDF, British Gas and SSE in announcing cuts to either gas or electricity this week.
Reacting to the news Ann Robinson of uSwitch said: “Another day, another big supplier has cracked under the mounting pressure to reduce bills. Today’s announcement is good news for households struggling with high bills especially as npower have also waived the cancellation fee for those on fixed plans. But the cold reality is that, like the other three price cuts we’ve seen this week, it won’t go far enough. Many consumers are still struggling with the 21% or £224 price hike consumers suffered over the last 18 months. Once again an energy company has only cut prices for one fuel, but we hope there will be more good news to come.”