According to the BBC, Ofgem has found that complicated tariffs have been confusing customers since 2008 and have increased from 180 to more than 300 in the last three years.
The six main suppliers of energy in the UK should face more competition from other companies Ofgem said and found evidence that they responded to rising costs more quickly than they reduced prices when costs fell.
If companies fail to meet the new guidelines set by Ofgem they could be referred to the Competition Commission.
Alistair Buchanan, chief executive of Ofgem, said: â€œConsumers must have confidence that energy companies are playing fair at a time when they are being asked to foot the Â£200bn bill to pay for the investment Britain needs to ensure secure and sustainable energy supplies.â€
Figures have suggested that energy supplier's net profit margin per person rose from Â£65 to Â£90 from September to November, a total rise of 38 per cent.
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