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Energy Bills: Npower Latest To Cut Gas Prices

Npower has become the latest of the so-called "big six" energy firms to cut gas bills as wholesale costs fall.

The company said the 5.2% cut in its standard tariff would not take effect until 28 March.

Npower is the fourth major firm to announce such a move this year.

The reduction, for approximately 1.2 million customers, means that on average the annual standard Npower domestic gas tariff is now £591 per year, down from £623

Npower said of its price cut: "This cut in gas prices is welcome news for many of our customers. We have balanced the wholesale price fall against increases in the other costs we are charged."

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According to energy market analyst ICIS, wholesale gas and electricity costs tumbled by almost a quarter in 2015 - prompting many to argue that the recent cuts by the big six providers are insufficient and should be around 10%.

uSwitch's Ann Robinson described npower's cut as a "token gesture".

She (Munich: SOQ.MU - news) added: She said: "Consumers will be exasperated at yet another small cut from the big six which, quite frankly, is too little too late.

"Hard-pressed customers should be seeing double-digit cuts to bills to helpstay warm and keep the lights on this winter."

Given that British Gas announced its price cuts last summer, EDF are the only big six supplier yet to cut prices.

Britain's big six suppliers - British Gas, EDF (Paris: FR0010242511 - news) , E.ON, nPower, Scottish Power and SSE (Amsterdam: UW8.AS - news) - supply energy to around 90% of UK households.

Npower is owned by the German energy giant RWE (Other OTC: RWNEF - news) which has seen its share price almost half in the last 12 months.