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UK energy prices drifting back downward

UK energy prices are settling in the wake the government’s announced change in green levies.

Following Scottish Power’s announcement of a 3.3% rate cut earlier this week, Npower announced an average price reduction of 2.6%. Scottish Power’s rate cut will take effect on 31 January, while the Npower reduction will take effect on 28 February.

Npower is the latest of the Big Six UK energy providers to announce a rate cut for consumers in the wake of the government’s recent decision to alter green levies on gas and electricity bills.

As a result of Npower’s announcement, 2.6 million dual-fuel customers will receive an average reduction of £50 on their energy bills. Npower electricity-only customers will also receive a rebate of £12 next fall. The price cut will affect customers whose prices went up in December, including those on discounted rates.

A leading price comparison site has revealed that despite the variations in pricing moves by the Big Six suppliers, the difference between the cheapest and most expensive of them is only £62 per year.

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