Ofgem outlines bill pressure plans
Energy companies will have to tell customers if they could be on a cheaper tariff under plans the Government has called "a big step forwards".
Firms will also have to move customers off so-called 'dead tariffs', which offer poor value for money.
Energy Secretary Ed Davey welcomed the move, saying: "These are the sort of measures I have been urging for some time, they represent a big step forwards in reforming our energy market to help millions of households get a better deal on their energy bills."
Ofgem's Ian Marlee told Radio 4 the proposals were "the most radical changes to the retail market since competition was introduced".
The move appears to be a step down from David Cameron's claim on Wednesday that companies would be forced to move customers onto better tariffs.
The move was welcomed by consumer magazine Which?, with executive director Richard Lloyd saying: "These proposals will boost customer power, making it much easier to shop around, and should increase the pressure on the energy companies to keep their prices in check."
Angela Knight, the head of industry group Energy UK, agreed that the proposals were "a pretty challenging set of requirements on the companies".
But Labour's Shadow Energy Secretary Caroline Flint says said Ofgem's proposals were only "tinkering at the margins" of the market.