Npower latest Big Six Energy firm to cut gas prices as tariffs drop by 5.1 per cent

ENERGY supplier Npower are latest Big Six firm to cut gas prices as they today announced they were reducing tariffs by 5.1 per cent.

Npower are cutting gas prices by 5.1 per centPA / GETTY

Big Six energy firm Npower are cutting gas prices by 5.1 per cent

The move, which comes into effect from February 16, will benefit 1.3million customers and the average bill will be reduced by around £35 a year.

It is the largest cut so far announced by the country's largest energy suppliers.

British Gas are cutting prices by 5 per cent from from February 27, Scottish Power by 4.8 per cent from February 20 and E.ON has reduced bills by 3.5 per cent with immediate effect.

RWE Npower chief executive Paul Massara said: "Today's announcement means we can get the benefits we are seeing in the wholesale market to our customers pockets as soon as possible.

The Npower price cut is the largest announced so far by a Big Six energy firmPA

The Npower price cut is the largest announced so far by a Big Six energy firm

We can get the benefits we are seeing in the wholesale market to our customers pockets as soon as possible

RWE Npower chief executive Paul Massara

"We have balanced this wholesale price fall against increases in the other costs we are charged. If there are further falls in wholesale prices, we will keep these under review to see if we can cut further."

The Npower cut means that on average the company's annual standard domestic gas tariff is now £667 per year, compared to £702 beforehand.

Energy firms have recently come under pressure from politicians as well as regulator Ofgem to pass on the benefit of sharply lower wholesale prices.

As a result officials figures have revealed that wholesale gas prices are down 19 per cent on last winter.

The Npower price cut will reduce the average bill by £35GETTY

The Npower price cut will reduce the average bill by £35

SSE and EDF Energy are the remaining two companies out of the Big Six still to announce price cuts.

Energy Secretary Ed Davey said: "Competition is driving down prices and it's consumers that will benefit. There's now even more pressure on the remaining energy companies to follow suit and cut their prices."

However, Martin Lewis, founder of consumer website moneysavingexpert.com, said the cuts were "trivial" in comparison with prices offered by smaller suppliers.

Consumers pay too much for energy

He said: "With the wholesale price of energy having come down by about 20 per cent - 30 per cent since the start of 2014, and the prices of the cheapest switchers' deals having dropped more than 10 per cent, these cuts are trivial.

"The urgent warning is for everyone to do a comparison to check if they're overpaying and which their cheapest is."

The news comes after a study by Which? found the Big Six energy firms were rated bottom by customers for quality of service and value for money.

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