The head of Ofgem has warned suppliers they need to prepare for change, “whether industry likes it or not”.
Speaking at the Energy UK Annual Conference today, Dermot Nolan, Chief Executive of the energy watchdog, said suppliers would need to drop their most expensive tariffs or face action.
His speech followed the government’s publication of its draft bill to cap energy bills for customers on poor value deals last week.
Mr Nolan announced a potential rule change to automatically switch customers to better deals without them taking action, rather than shifting them onto pricey default tariffs.
He added a range of other measures, including collective switching, could also be introduced.
The Ofgem boss said: “For too long a number of suppliers have resisted change, they’ve resisted calls to do more to get their customers on expensive tariffs a better deal. Some suppliers have but probably not enough.”
Chief Executive of E.ON, Michael Lewis also spoke at the conference – he would not confirm or deny whether the Big Six firm would mount a legal challenge to the price cap.