Monthly Direct Debit (MDD) gas customers will receive GBP50 a year discounts, up from GBP20 and for electricity-only customers will receive GBP40 for their annual discount, this is equivalent to an additional 4.8% reduction on their annual electricity bill.
Additionally, npower has introduced a new discount of GBP10 per year for dual fuel customers who pay on receipt of bill.
The MDD dual fuel customers get GBP100 discount after using the payment system for a year. However, for gas-only customers, the discount increases from GBP20 to GBP50, and for electricity-only customers the discount will be changed from GBP20 to GBP40.
Kevin Miles, CEO of npower retail said: “We always aim to offer competitive prices to our customers and we have lowered our gas prices although our profits halved in 2009. The combined profit from supplying nearly 6.8 million accounts and operating nine power stations was equivalent to just 9p a day for each customer account.”
The company has become the fourth of the ‘big six’ energy suppliers to reduce the gas prices. Earlier, Scottish and Southern Energy reduced gas prices by 4%, British Gas by 7%, and E.ON slashed its gas prices by 6%.
