Energy regulator Ofgem has announced its cap on energy prices, where suppliers can charge only a maximum amount to average dual fuel direct debit customers, would fall by 23 percent this quarter.
This implies that customers will see a significant decline for the three months from April 1 compared to the last quarter.
However, campaigners have warned that the changes in the recent government support measures for domestic energy costs, set to take effect from next month, might lead to many households paying more overall, despite the Ofgem price cap reduction.
Chancellor Jeremy Hunt has increased the energy price guarantee, which Liz Truss introduced last September to ensure that households did not pay more than £2,500 for electricity and gas, with the government subsidising the remaining price permitted by the cap.
Nevertheless, this will be boosted to £3,000 from next month, which is deemed by some as a less generous offering, and it comes when a £400 discount provided by Rishi Sunak last year has been allowed to run out.
Industry experts have also criticised the changes, saying that "the cap is certainly a good thing… but consumers have been hit by one big setback when it comes to energy bills.
" Another said: "This change in government policy could mean that some people end up paying more regardless of the price cap reduction."