npower has become the final of the big six energy suppliers to announce price cuts, with electricity bills set to fall by 8% at the end of March.
The supplier says the move will mean customers’ electricity bills will reduce by an average of £43 a year.
Kevin Miles, chief executive officer of npower, says: “Wholesale prices are still higher than in 2007 but we are determined to reduce prices for our electricity customers.
"We will continue to keep our costs and prices under review to ensure that we remain competitive and give our customers value for money.”
Last year, npower increased its prices 42%.
Will Marples, energy expert at uSwitch.com, says: “By the end of March, the majority of consumers will be seeing some small benefit from lower wholesale energy prices. But it has taken time and price cuts have averaged out at 4.3% or £56, which will only make a small dent in household energy bills.”
npower's gas customers will not see their bills decrease.
Gareth Kloet, head of utilities at Confused.com, says: "To keep gas prices the same is another case of an energy company acting too little, too late when it comes to cutting prices in the best interest of its customers."