As per the proposals, which were first put forward by Ofgem in October 2012, suppliers need to offer more than four gas and electricity tariffs and make bills simpler and easier to understand.
British Prime Minister David Cameron said the package announced today is "a huge step" towards energy bills.
"This is about putting people before profits. It’s about pensioners being better able to heat their homes in winter, and families better able to cope when the bills arrive," Cameron added.
Cameron also noted that the forthcoming Energy Bill would support the latest move, and ensure that all energy customers are put on their supplier’s lowest variable rate.
The proposals are scheduled to come into force this summer.
