Energy companies saw limited impact today from news energy regulator Ofgem could cap bills for some of their poorest customers and make it easier to switch supplier in response to a government request to set out plans to help customers.
In a statement, Ofgem said options being considered include introducing a safeguard tariff for vulnerable consumers which would protect them from overpaying for their energy.
The energy regulator said its research and the findings of last year’s Competition and Markets Authority investigation “point to vulnerable consumers in particular getting a poor deal.”
READ: HSBC upgrades rating for British gas-owner Centrica after Queen’s Speech revealed no intention for tariff cap
Under the plans, Ofgem said the cost of installing pre-pay meters would be capped at £150, another move designed to help the poorer customers.
The regulator also said it would seek to make switching energy supplier easier, by allowing people to switch directly by using comparison websites.
It will trial its own online switching service to help customers who have been on the same poor value tariffs for three or more years.
Ofgem chief executive Dermot Nolan said: "We are committed to ensuring that the more disadvantaged in society are not left behind as we move towards a smarter, more competitive energy market."
Limited impact on dominant ‘Big Six’ energy companies
However, the proposals are likely to have a limited impact on the dominant ‘Big Six’ energy suppliers in the UK, which have around 85% of the market.
Energy prices became an issue in last month's general election with the threat of a broader cap in standard variable tariffs hanging over the industry.
But with the uncertainty from the hung parliament vote outcome, which requires Theresa May’s Conservative government to be propped up by an agreement with Northern Ireland’s Democratic Unionist Party, such a threat has receded.
In late morning trading, shares in British Gas owner Centrica PLC (LON:CNA) - Britain's largest energy provider - were up 1.4%, or 2.8p at 203p.
Britain's other "Big Six" suppliers are SSE plc (LON:SSE); Scottish Power, owned by Spain’s Iberdrola; Innogy's npower; Germany’s E.ON; and French-owned EDF Energy .
Utilities have denied overcharging customers, but last year the Competition and Markets Authority found that UK households overpaid a total of £1.4bn a year on average from 2012 to 2015 because of uncompetitive standard energy tariffs.