E.ON, one of the so-called 'Big Six' energy firms, has confirmed it is to reduce its standard gas charge by 3.5% with immediate effect.
The company said the decision, coupled with a new one-year fixed dual fuel product it was also launching, represented a "risk" given Labour's pledge to introduce an energy price freeze should the party win May's election.
It insisted it had passed on to customers as much as it could, with wholesale costs having plunged by around 30% in the past year.
E.ON said the average reduction to its standard gas price was equivalent to two weeks' gas use or £24 off an annual gas bill.
The household supplier, which has 4.5 million residential customers, claimed the fixed product was the best on offer in the market at an average £923 annually and was available from today, saying it was open to new and existing customers.
Chief executive Tony Cocker said: "Today's 3.5% cut to our standard gas price and the launch of the UK's cheapest energy tariff, our one year fixed product, demonstrate that we fundamentally believe in doing the right thing for our customers.
"This is further evidenced by the fact we are the first supplier to reflect through our standard tariff the overall drop in wholesale gas prices this winter but also that, when our prices had to increase at the start of 2014 to reflect cost increases, for the second year running we announced later than any other major supplier and, on that occasion, at a lower average percentage increase level than any other major supplier.
"While oil prices have slumped, the gas price has remained volatile - some days up, some days down - and many of the other non-energy costs that we don't control but make up a customer's bill have increased and are set to increase further.
"However, today we've taken steps so we can make a price cut on our standard gas tariff at the same time as offering customers, existing and new, the chance to sign up to the UK's lowest priced energy tariff.
"As we have always said where it is possible we will try to pass savings on to our customers."
Wholesale gas costs fell 26% between the third quarter of 2013 and and the same period in 2014 and have fallen further since.
Sky News reported at the weekend that firms were reluctant to slash standard bills before May, given the fact that raw energy had been purchased at higher prices over years to ensure supply and the prospect of a looming price freeze.
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