It has announced a 6 per cent reduction, which will benefit about 1.9 million British homes.
The German-owned utility said this will reduce the average annual household bill by about £42 for those making direct debit payments. The cuts would take effect from 31 March at the end of the peak winter demand period.
E.ON's move comes in the wake of British Gas and Scottish & Southern Energy trimming their household gas prices this year by an average of 7 per cent and 4 per cent, respectively.
British Gas currently has the cheapest standard dual-fuel offering covering gas and electricity. E.ON's offering would be the second cheapest standard tariff behind Scottish & Southern.
E.ON customers number about 5.5 million in the UK, but the company said many of those would not be affected by the tariff reductions as they are electricity-only consumers or are on fixed-rate subscriptions.
The government and industry regulator Ofgem have been urging the energy providers to cut residential gas bills to reflect lower wholesale prices.
