Energy provider NPower announced a seven per cent cut in its gas prices for domestic consumers on Tuesday to become the fourth company in Britain to do so. The tariff reduction announced will applicable from March 26.

As per the company announcement, average annual gas bill would drop by nearly £50 post this cut. Chief Executive of Npower Retail Kevin Miles said that the company always aims at offering competitive tariffs and for the same the company decided to slash its gas price despite its bottom-line shrinking to almost half last year.

Npower's decision came after three of the big six energy providers slashed their gas price offered to domestic customers after a sharp fall in wholesale prices over the past few quarters. The wholesale prices dropped from over
100p per therm in mid-2008 to less than 40p.     

Eon was the last one to cut its prices before Npower. The energy provider slashed six per cent of its existing tariff.

Nevertheless, even after the tariff reduction price charged by NPower, which at present is the costliest energy provider in the country, will continue to be one of the highest in Britain.

Meanwhile, the company is also planning to offer discounts to the customers who pay by direct debit.