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13 October 2017, 04:06 | Sandy Nunez
Theresa May has said that she wants to cap tariffs for all 12 million households on poor value standard tariffs Andrew Milligan PA
In the meantime it said it was introducing new rules to allow suppliers to roll customers coming to the end of their contracts onto another fixed deal instead of a poor value standard variable tariff.
Ofgem said it will work with the government to ensure that those on standard variable and other default tariffs receive price protection as soon as possible "if legislation is in place".
Prime Minister Theresa May said, "I have been clear that our broken energy market has to change it has to offer fairer prices for millions of loyal customers who have been paying hundreds of pounds too much".
More than 18 million customers are now on standard variable tariffs or other default tariffs - many of which see them paying more despite their loyalty. It will consult on the design of the price cap for default deals while the government's draft bill progresses through parliament.
A United Kingdom government plan to cap the most common form of gas and electricity tariffs for millions of households in the country would not come into effect in time for this winter, energy regulator Ofgem said yesterday.
The bill will be published about mid-morning on Thursday, with the business secretary, Greg Clark, due to to make a statement in the House of Commons.
For now, the regulator said suppliers must ramp up their efforts to get more of their customers on default tariffs onto better value deals. Customers are still likely to be better off by searching and switching themselves.
"I would challenge the entire industry to say the standard variable tariffs are not good deals".
The government will announce further details of the proposals today.
They argue intervention in the market does not promote competition.
Mr Nolan, perhaps, sees the next twist in the price cap saga's plot. Ian Conn, who runs British Gas owner Centrica, gave a heavy hint that the UK's biggest energy supplier would do something similar.
Officials said that the ceiling on electricity and gas bills would last until the end of 2020, which is also the government's deadline for when all homes should have been offered a smart meter, which enable new types of tariffs.
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