Npower today announced a 5% gas price cut for all customers on standard and capped tariffs from 1 February.

The giant becomes the fourth of the big six firms to announce a modest drop in the cost of energy this week.

Npower said initially that all its variable and capped rate customers will see prices drop by 5%. However, it later emerged that many on cheap internet deals will not see a cut despite the firm's initial statement. It is not cutting the cost of electricity.

British Gas revealed an immediate 5% electricity cut yesterday, while EDF will reduce gas costs by 5% on 7 February and Scottish & Southern Energy customers will see gas prices drop by 3.8% on 26 March.

The reductions are a result of falling wholesale prices — the price power firms pay for the gas and electricity they sell to us.

Eon and Scottish Power are yet to announce any price drops.