Following on from the recent announcements from SSE and British Gas, RWE npower has become the third UK energy utility to reveal plans to cut its prices.
According to a statement from the German-owned power firm, npower will become the cheapest provider of gas when its price reductions kick in from April 30, 2007. British Gas said recently that it will become the cheapest provider of both electricity and gas when it cuts tariffs in early March.
In late April, npower will reduce its gas price by 16% for all residential customers. The energy company is also introducing an extra annual discount for its monthly direct debit dual fuel customers, giving a total discount of GBP80 and so increasing their gas price drop by up to 18%.
Meanwhile, npower’s electricity prices are decreasing by an average of 3% across Britain. Starting from a lower price base than British Gas, these reductions will make npower cheaper than British Gas for dual fuel – as well as Britain’s cheapest gas supplier.