Chancellor George Osborne is set to reveal details of the plan in his Autumn Statement on Thursday 5 December, with the reduction to be achieved by a combination of cuts to green levies and £12 in the form of a Government rebate.
British Gas and SSE were the first to confirm they will pass on this saving to customers, with Centrica-owned British Gas revealing it will hold back £53 of its planned £123 increase to energy bills from 1 January.
Meanwhile, Npower has promised not to increase energy prices until 2015. The brand’s 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."
The Government’s move follows a for 20 months if his party wins the general election in 2015. Miliband has decried today’s cut as a "cosy deal" between the coalition government and the UK’s "big six" energy firms.
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