Several of the 'Big Six' energy providers have announced changes to their energy prices, on the day the Government said it would take action to reduce the cost to consumers.
'Big Six' energy provider npower, which recently raised its customer bills by more than 10%, has announced a decision to put a freeze on any more hikes until 2015.
British Gas subsequently announced it would drop prices in 2014. Its announcement was then followed by rival SSE.
The Government has designed a fund that would give a rebate to electricity customers.
Npower chief executive Paul Massara said: "We welcome today's announcement as an Important step in cutting energy costs for our domestic customers. As a result of this announcement we will reduce our bills.
"We are currently calculating how large this reduction will be, and can assure our customers that it will fully reflect the reduction in the costs to our business."
But the promise comes with a caveat - over the cost the company pays for energy sourcing and distribution.
Mr Massara said: "We don't plan to increase energy prices before Spring 2015, unless there are increases in wholesale energy costs or network charges."
Meanwhile, British Gas said its reduction in household gas and electricity prices would start on January 1.
It said the average reduction would be 3.2%, which is equivalent to £41 on average off the annual dual fuel bill.
With the additional £12 customer rebate for the Government's Warm Home Discount (WHD) scheme, the annual saving would be £53 to the average dual fuel customer.
Today's announcement by British Gas means a part reversal of its averaged 9.2% price increase, which was announced on October 17.
In a statement, SSE said: "On the basis of today's announcement and the planned consultation, SSE plans to reduce its household energy prices before the end of its financial year.
"The overall impact of the proposed changes, including the rebate which is expected to apply in Autumn 2014, should lead to a typical dual fuel customer benefiting by around 4%.
"This should equate to a saving of around £50 for a typical dual fuel customer"
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