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Why can't a domestic customer pay a monthly floating rate that truly reflects price changes in wholesale markets?

Asked by Nick from London, 18/05/2009.

We trialled something called 'npower tracker' in January 2007 – which mirrored movements on the year-ahead wholesale energy market; much like a mortgage tracker. The problem was that it was exposed to the volatility of the market and the peaks were very much higher than our fixed rate customers were paying. Customers were just not willing to pay the price of the peaks and so the tariff never progressed any further than a trial.

npower
Answered by npower employee at npower.

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