More than 11 million customers are poised to benefit from Ofgem’s price cap, according to the energy regulator.

The watchdog said the average consumer will save £75 a year under its proposals and in total, customers are predicted to save £1 billion.

The regulator’s proposals set the price cap at £1,136 per year for a typical dual fuel customer paying by direct debit.

Ofgem aims to confirm the price cap in November, ready for it to be introduced at the end of the year.

Six-month review

The cap will be reviewed in February, with any change introduced in April, and will then be examined every six months.

Lawrence Slade, chief executive of industry body Energy UK said for many suppliers the cap will pose a significant challenge.

“It is crucial that the cap ensures we have an investible energy sector where efficient and financially robust companies can trade, and innovation and engagement can continue to flourish and deliver benefits for consumers.

“The energy sector is undergoing a rapid transition offering more choice than ever - and many customers will be able to make a bigger saving by joining the record 1 in 6 customers who switched last year.

Energy efficiency is the most effective way to help customers save money on their energy bills for the long term and Energy UK has long been calling for a national energy efficiency programme, which was recently supported by the National Infrastructure Commission.”

> See Ofgem's statement