A typical households energy bill is set to fall by £122 a year from July, dropping to the lowest level seen in two years.
The Ofgem price cap will drop from £1,690 to £1,568 from July 1, around £500 less than the same time last year and nearly £1,000 less than the £2,500 limit the government was forced to introduce during the peak of the fuel crisis.
Despite being at their lowest level since before Russia's invasion of Ukraine, bills remain above pre-pandemic levels and around £400 higher than three years ago.
"The fall in the energy price cap reduces bills slightly, but our data tells us millions have fallen into the red or are unable to cover their essential costs every month," said the chief executive of Citizens Advice, Dame Clare Moriarty.
"People cannot rely on lower energy prices alone to escape the financial issues they've been experiencing. That's why we need better targeted energy bill support for those really struggling to keep the lights on or cook a hot meal."
Rise expected in future
However, forecasts suggest that bills will still rise again as the country heads into winter.
Research suggests today's fall is only temporary with a typical bill forecasted to rise to £1.762 from October, and remain around the same level until the end of March.