As part of a slew of initiatives designed to assist the most vulnerable, the regulator claims it is taking action to assist clients who are behind on their payments.
A typical home paying by direct debit for gas and electricity would have an annual energy bill of £1,690 after Ofgem revealed a 12% price cap decrease will take effect on April 1.
One reason for the decline has been a mild winter.
The Ofgem adjustment puts the cap over 50% higher than pre-crisis levels, even if it provides some respite for household budgets that have been pinched by the challenging economy.
Although prepayment meter users would not be impacted, the regulator revealed alongside the maximum figure that it was taking action to address a record £3.1 billion in bill arrears.
