Ofgem has announced that energy bills will fall to a two-year low in April as the price cap is lowered to £1,690 from £1,928 on an annualised basis.
This reduction comes after a consistent drop in wholesale prices and means households will be charged less per unit of energy, given the cap effectively determines bills.
Per kilowatt hour, electricity will cost 24.50p and gas will cost 6.04p for those on standard variable tariffs, down from 28.62p and 7.42p respectively previously.
However, daily standing charges are set to soar as suppliers are allowed to recoup debt once again by inflating consumer bills.
Regardless of usage, consumers will be charged 60.10p each day for electricity, compared to 53.35p previously.
The daily charge for gas will increase from 29.60p to 31.43p, meanwhile.
This is as the amount suppliers are allowed to charge consumers to cover their own debt more than doubles, from £11 on an annualised basis to £28.
Critics have previously slated the use of daily standing charges for limiting the amount cash-strapped households can save by cutting energy usage.
Such moves to let suppliers charge more has also previously resulted in companies profiting, with British Gas reporting a tenfold increase in profits for last year thanks to the allowances.