Npower latest supplier to cut gas prices

Energy firm npower today became the fourth major UK provider to cut its gas prices, as it announced a reduction of up to 7% in standard bills. The move, which will take effect from 26 March, will see npower's 2 million residential gas customers pay on average £50 less a year. Average gas bills for dual fuel customers will fall from £761 a year to £707, while those for customers just buying gas will drop from £789 to £727. Npower is also overhauling its discounts for those who pay by monthly direct debit, which will see the 12-month anniversary discount available to electricity customers double to £40, equivalent to 4.8% off their electricity bill. Gas customers who pay by monthly direct debit will get a £50 discount after a year. Npower's cut comes after British Gas , E.ON and Scottish & Southern Energy reduced their prices by similar levels in recent weeks in response to sharply lower wholesale energy costs. Despite this flurry of price cuts energy bills remain substantially higher than two years ago, and charities and consumer groups have called for bigger reductions. However, npower's chief executive Kevin Miles defended the level of cuts his firm has made. "We always aim to offer competitive prices to our customers, and we have lowered our gas prices although our profits halved in 2009," he said. "The combined profit from supplying nearly 6.8m accounts and operating nine power stations was equivalent to just 9p a day for each customer account."