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Ofgem's Ian Marlee explains how the new plans would work
Energy regulator Ofgem has unveiled proposals to force suppliers to tell customers about the cheapest gas and electricity tariffs they have on offer.
Ofgem said the proposals would make the market "simpler, clearer and fairer".
It wants firms to show their cheapest tariff on bills, and for customers to default to the cheapest option at the end of fixed-term contracts.
It follows days of uncertainty over David Cameron's plan to force firms to put customers on their lowest tariffs.
Other proposals include banning complex multi-tier tariffs, and new personalised information to help consumers find their best deal.
Ofgem chief executive Alistair Buchanan said: "Our plans will put an end to consumers being confused by complex tariffs and will usher in a simpler, clearer, fairer and more competitive energy market for all consumers.
"I am glad to say that suppliers have already responded with some initiatives, but these don't go far enough."
Ofgem is proposing to limit each energy supplier to no more than four core tariffs for each fuel.
End Quote Alistair Buchanan Chief executive, OfgemOfgem is determined to press forward with... the most far-reaching shake-up of the retail energy market since competition was introduced"
Dual fuel discounts will be presented separately to increase clarity.
On Wednesday, Mr Cameron surprised the energy industry when he said during Prime Minister's Questions that the government would introduce laws to make suppliers give customers the cheapest tariffs.
Energy Minister John Hayes said later that the government was only considering introducing such a law.
Ofgem will now conduct further consultation with the industry and consumers, and believes the proposals could be enforced from next summer.
However, the regulator said that there was nothing to stop energy companies starting to implement changes now.
Mr Buchanan said: "We have spoken to thousands of consumers who have helped us shape this package through a period of extensive consumer research, and are very grateful for their input.
"Ofgem is determined to press forward with proposals to deliver for consumers the most far-reaching shake-up of the retail energy market since competition was introduced."
Tom Lyon, of price comparison website Uswitch, said that the proposals were a move towards a more regulated energy market.
The changes would not solve consumers' problems with their suppliers, he told the BBC, "but it should make it easier for customers to take more control of their energy bills".
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