Britain’s energy retail market needs to be reshaped.

That’s the suggestion from Jonathan Brearley, Ofgem Chief Executive, who said that the regulator expected that volatility in the market and high energy prices would likely continue.

Speaking at the Future of Utilities Summit, Mr Brearley said: “As we look out towards our low carbon future, we know that the best way to construct an efficient and secure low carbon system means customers managing much more frequent changes in supply and demand and possibly, much more frequently changing prices.

“This means ultimately we will need a different retail model to manage in the medium term but also towards the longer term.”

This will require a sector “well capitalised” to manage the volatility, the head of the energy regulator has said.

Jonathan Brearley added: “Accepting that customers switching between suppliers will not play the role historically hoped for. We need other drivers of change and improvement.”

Earlier today, Ofgem published its findings of a review into how energy suppliers treat their vulnerable customers.