Ofgem said it planned to radically improve the competitiveness of the household energy market.
The regulator also wants to work with suppliers on a proposal which would provide vulnerable consumers and longtime customers of energy firms with information about cheaper tariffs elsewhere.
David Cameron recently vowed to force firms to put customers on their lowest tariffs.
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The regulator wants to simplify the market by limiting each supplier to just four core tariffs expressed as a standing charge and single unit price in pounds and pence.
This would see an end to tariffs expressed as a percentage and would give consumers greater clarity, Ofgem said.
Chief Executive of Ofgem, 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. 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.
"I am glad to say suppliers have already responded with some initiatives, but these don't go far enough. Ofgem is determined to press forward with proposals to deliver for consumers the most far-reaching shakeup of the retail energy market since competition was introduced."
(IT)
