Npower pits One 'bundle' against British Gas

Npower is to launch an Npower One product, which bundles together dual-fuel energy products with boiler cover, in an effort to challenge British Gas' lead in the home-boiler service market.

The utilities company is launching a nationwide drive to promote the bundled package, which offers fixed energy prices until August 2009, free boiler cover and an annual discount of £80.

Npower claims the package will save customers about £150, compared with the cost of purchasing British Gas' 2009 Price Protection and Homecare 100 boiler cover separately.

The energy firm will promote the deal in an integrated campaign spanning radio, press and direct mail, which breaks today (Wednesday). It hopes to attract 50,000 customers in the first phase.

Rival providers such as E.ON are expected to launch similar bundled energy packages later this year.

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