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The main measures confirmed in Ed Davey's Energy Statement are as follows:
- Government will provide £300m in both 2014 and 2015 - £600m in all - for a new rebate to all domestic electricity customers worth £12 each year
- It will consult on reforming the Energy Companies Obligation to make it cheaper, knocking £30-35 off average bill next year
- The Affordable Warmth and Carbon Saving Community Obligation - schemes which help low-income and vulnerable households - will be maintained at current levels and extended until March 2017
- The electricity distribution network operators will make voluntary improvements worth £5 from the average energy bill
He says these measures combined will result in saving worth £50 on the average energy bill.
Energy Secretary Ed Davey told ITV News' Business Editor Laura Kuenssberg that energy firms wanted to "slash" government charges, but that ministers refused.
Responding to Ed Davey's statement, Labour shadow energy secretary Caroline Flint has attacked the coalition's plans to reform the energy market.
She said that the reform mean that "energy companies will still be allowed to put up people's bills this winter".
"There is not a single measure that will cost the energy companies a single penny," she added.
Ed Davey says that changes to the Energy Companies Obligation - which drives energy-efficiency measures - will knock between £30 and £35 off the average bill next year.
Energy Secretary Ed Davey gets a lively reception in the House of Commons when he says: "It is right that the government keeps these social and environmental obligations, paid for by energy bill payers, under continuous review".
He adds: "Where we can act to reduce their impact on bills, while maintaining the integrity of our policy, we will."
Energy Secretary Ed Davey is giving an energy statement in the House of Commons.
He began by noting that Britons have seen bills rise every year for the last decade. He said energy companies need to be more transparent about what constitutes energy bills.
The average British Gas customer's bill will still rise £75 next year following today's announcement on energy, according to Ofgem figures.
The Government said its energy announcement will save households an average of £50 a year.
Here are a selection of ITV News viewers' opinions on the subject:
ScottishPower said it will "try and avoid further price rises in 2014" but stressed this will "depend on whether there are increases in wholesale energy prices or other costs outside our control".
The energy firm said the taxpayer funded £12 rebate will be applied to all households "in line with the Government timetable" of two years.
Retail chief executive Neil Clitheroe said, “We welcome all of these changes proposed by Government, especially those to the ECO programme, as they represent a strong commitment to have a more rational debate on energy policy in the UK".
Latest ITV News reports
The coalition has unveiled measures it says will knock £50 off the average energy bill, but some of that cost will be absorbed by taxpayers.
The Government has laid out its ideas on how to cut energy bills this winter - but the plan has been put together in haste.