Around 15 million households are to see their energy bills fall by an average of £17 from April.
The boost for domestic budgets comes after the industry regulator announced it would lower the price cap for the summer period, as a result of lower wholesale energy prices.
The limit was introduced 12 months ago aimed at tackling so-called "rip-off" default tariffs.
The default price cap, which protects around 11 million households, is set to fall from £1,179 to £1,162 from April.
Meanwhile, the pre-payment meter cap, which protects a further 4 million households, will fall from £1,217 to £1,200 over the six months to September.
A large part of the reduction is due to wholesale costs continuing to fall between August 2019 and this January.
A strong supply of gas, such as healthy stock inventories, has been the main factor pushing down prices.
During 2019, households protected by the default price cap are estimated to have saved £1bn on their energy bills.
Ofgem closely monitors suppliers complying with the cap and has taken action when they have not met their obligations.
This summer, Ofgem will carry out a review for the government on whether the market conditions exist for the default price cap to be lifted or be extended past 2020.
Ofgem chief executive Jonathan Brearley said: "The default price cap is designed to protect consumers who do not switch from overpaying for their energy, whilst encouraging competition in the retail market.
"Suppliers have been required to become more efficient and pass on savings to consumers. In its first year, the cap is estimated to have saved consumers £1 billion on average on their energy bills and switching rates have hit record levels.
"The announcement is further good news for the 15 million households covered by both price caps who will see their energy bills fall in April. Households can reduce their energy bills further by shopping around for a better deal."
The price caps are a limit on the cost of a unit of gas and electricity.
They are not a cap on customers' overall energy bills, which still rise or fall in line with their energy use.
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February 07, 2020 at 02:52PM
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Energy bills to fall by typical £17 for 15m households - Sky News
"typical" - Google News
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