E.ON has announced that it is to cut its gas prices by 3.3%, which will cut £25 off the average gas bill.
The gas price cut will affect around 2 million of E.ON's customers, bringing the average dual fuel bill down to £1,232, from £1,259.
It is the second price cut to be announced this year by the supplier, which reduced its electricity prices by 9% or £44 at the end of March.
E.ON is also removing the standing charge for its gas prepayment meter (PPM) customers, which will effectively reduce the average prepayment dual fuel bill by £26 to £1,232, keeping PPMs in line with the cost of standard plans for people who pay on receipt of their bill.
This latest price cut will not wipe out last year's price rises, when E.ON increased its prices by 42% or £384. Even after this latest cut, the average customer's bill will still be £319 higher than a year ago.
Will Marples, energy expert at uSwitch.com, commented: "This cut is welcome news, but consumers who were expecting more will be disappointed. It leaves the market pretty much unchanged and puts around £2 a month back into customers' pockets. It's the right move, in the right direction, but it remains to be seen if it has gone far enough."
He added that consumers should not wait for the remaining price cuts and should act now to cut their energy bills, by making sure they are paying the lowest possible price for their energy and trying to use less of it.
Moving to dual fuel, paying by direct debit and signing up to an online plan will all help consumers to save money on their energy bills - switching to a competitive plan could cut your energy bill by up to £425.
Compare energy suppliers today and see how much you could save.