Npower cuts 5%

The energy supplier, Npower, is to cut its standard gas price by an average of 5.2 per cent.

The typical annual bill for 1.2 million customers will drop by £32.

It is the fourth major provider to reduce prices in the wake of the falling cost of oil, following moves by Eon, SSE and Scottish Power.

While Eon's price cut was effective from 1st February, Npower's customers will have to wait until 28th March for the saving.

Will fixed rate energy customers get reduced bills?

Update here.

There's a big debate over who should foot the bill for insulation and energy-saving measures under ECO (the Energy Company Obligation).

Up until now the suppliers have had to pay, passing the cost to customers -- adding around £90 to the energy bill.

But after the recent outcry over energy prices, those same suppliers now expect the Chancellor to shift the cost to taxpayers, with the news expected in 5th December's Autumn Statement (shouldn't it be the Winter Statement?).

EDF put up its prices by less than the others, saying it was assuming the Chancellor would lighten the burden. Other companies have said they'll scale back the price hikes they have already announced.

But millions of customers are on fixed price deals. The prices they pay are not supposed to change, raising the risk that they might not benefit from the heralded cut in bills.

Well, I hear from npower today that they will pass on any price reductions to fixed rate customers, even though -- according to the small print -- they don't have to.

Will the other suppliers do the same? They won't want to look like Christmas Scrooges, will they?

Npower strikes back

The chief executive of npower has taken a lot of stick for the fact that his company paid no, or virtually no, corporation tax for 3 years. That 2009, 2010 and 2011.

He was criticised by MPs, was in my piece on Radio 4 news last night and got a mauling in the papers.

So here's Paul Massara's defence.

Action to stop scourge of silent calls

The phone regulator, Ofcom, says the energy company, Npower, and the emergency plumbing and boiler company, Homeserve, may have broken rules governing large scale phone campaigns.

It is investigating the firms, which have over 9 million customers between them, for subjecting members of the public to too many silent or abandoned marketing calls.

Ofcom says it believes they "persistently misused an electronic communications network" by making an excessive number of abandoned calls.

Call centres use automatic diallers to contact large numbers of people. But the person at home can find there's no one on the line if there aren't enough staff at the call centre.

It added that Homeserve repeatedly called people within a 24 hour period and that Npower played recorded marketing messages if no one from the call centre came on the line.

Ofcom can impose fines of up to £2m. It is considering whether to take further action.

Homeserve admitted to the BBC that it had been in breach of the regulations for a very short period, but a spokeswoman said the company was now fully compliant.