Npower set to reduce energy bills by 2.6% by end of February

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Energy firm npower has confirmed it will reduce energy bills by 2.6% - the last of the 'Big Six' to do so.

A spate of 'Big Six' energy suppliers have already begun to reduce their gas and electricity bills - which in many cases were only raised at the tail end of last year - following a shift in the government's energy policies.

Npower only increased its energy bill prices in December, but this reduction will see 2.6 million dual-fuel customers save £50 on their bills.

This reduction is significantly lower than its rivals however, especially when taken into context against its 10.4% rise in bills on December 1 - the highest of all the energy suppliers.

Furthermore, customers on fixed-price tariffs will actually only receive a £12 reduction and will not see their tariffs cut at all compared to both SSE and British Gas customers.

The reduction from npower will not occur until the end of February however, with the firm claiming a consultation on policies and legislation

RWE npower chief executive, Paul Massara, said: "This reduction is a reflection of the recent review of two government policies and their impact on household energy bills and it is a welcome start.

"The natural next step would be to review all the impact of all policies that add to business and household energy bills."

Up until npower, ScottishPower had been the most recent firm to confirm a price reduction, joining fellow 'Big Six' suppliers British Gas and SSE in offering cuts between 3.2% and 3.5%. The three firms had raised energy bills in 2013 by 8.6%, 9.2% and 8.2% respectively, still significantly lower than the npower price hike.

The remaining 'Big Six' energy firms, EDF Energy and E.On, introduced price rises of 3.9% and 3.7% respectively, claiming the lower price increase was a result of having already incorporated the changes proposed in the green levies deal.

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