A deal to spare households the full impact of energy bill rises is "good news for British families", David Cameron has insisted.
The Prime Minister said the package of measures will mean bills around £50 lower than they would otherwise have been.
But Labour said the plans would mean households still paying £70 more than last year and environmental campaigners claimed the Government had "crumbled" in the face of opposition from the Big Six energy firms by agreeing to cut green measures.
British Gas will cut dual-fuel bills by an average of £53 from January 1, but this is still less than half the increase imposed on customers last month.
Other energy firms made similar announcements, with SSE expecting a dual-fuel saving of around four per cent before the end of March, equivalent to around £50. Npower does not plan to increase energy prices before spring 2015, unless there are increases in wholesale costs or network charges.
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