Around 1.9m monthly direct debit customers will benefit from a price cut of £42 a year, the utility said.
Vulnerable customers on E.ON’s WarmAssist tariff will see larger cuts, with an estimated £57 a year reduction in gas prices from 1 March.
E.ON is the third of Britain’s big six energy providers to cut gas prices in 2010, after British Gas and Scottish and Southern.
Energy regulator Ofgem and the government have urged Britain’s energy suppliers to cut residential customer bills to reflect the fall in wholesale prices. The three yet to cut prices are RWE’s npower, EDF Energy, and Iberdrola’s Scottish Power.