The gas and electricity consumer watchdog's chief executive Allan Asher made the announcement after the EU energy commissioner Andris Piebalgs revealed proposals to reform the market.
"The big six players in our market are all vertically integrated and the Commission's plans for unbundling network and supply businesses mean we will see changes here," he explained.
"This is a positive development that could see real competition returning to the energy market in Great Britain."
Energywatch was established in November 2000 to protect the rights and interests of energy customers in the UK.
The organisation plans campaigns to name and shame companies, while also giving advice to customers who have difficulties with their supplier.
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