Npower joins energy price war

Energy firm npower has announced it is cutting gas and electricity bills as a price war in the industry hots up.

The company, owned by German group RWE, said gas prices would fall by 16 per cent from 30 April, with average electricity bills also due to fall 3 per cent.

It follows reductions announced by British Gas earlier this month and Powergen is now promising to do the same.

Kevin Miles, npower's residential managing director, said: "We provided more protection to our customers during a time of record wholesale prices. Today's announcement confirms npower's commitment to offer value to our customers."

The intensification of the price war comes after rival British Gas said ten days ago it would cut gas prices by 17 per cent and electricity bills 11 per cent from March 12.

Powergen also unveiled lower prices for new customers last week, but is yet to announce lower prices for its six million existing customers.

Npower said the cuts would make it cheaper than British Gas for its three million 'dual fuel' customers who buy gas and electricity from the same energy supplier.

Adam Scorer, campaigns director at independent energy watchdog energywatch, welcomed news of npower's decision to cut gas bills but criticised the company's delay in making the move until the end of April.

He said: "The news that npower is to follow British Gas with a double digit reduction in its gas prices has to be welcome.

"But with Npower customers having to wait until May for bills to come down this is little more than a distant promise of cheaper gas."

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