Energy secretary Chris Huhne has dismissed reports that planned green measures will cause a dramatic increase in household bills.
Instead, he insisted that some of the lowest energy prices in Europe are experienced in Britain.
Mr Huhne said that people would see a drop in prices in the long term as the country becomes more reliant on renewable energy sources and less on the Middle East's gas and oil.
His comments follow the recent announcement that from August 18, British Gas is to increase gas and electricity prices by an average of 18% and 16% - affecting nine million customers.
For people who receive duel fuel bills, there will be an increase of £190 a year to £1,219.
Scottish Power has already announced a similar rise in prices, with the other big suppliers expected to reveal their price hikes in the next few weeks.
Mr Huhne advised that employing money management techniques such as using price comparison websites was a good way to save cash.
He said: "Switching is a really effective means of the consumer taking some power."
