Households could see their fuel and electricity bills slashed by as much as £300 every year after Ofgem’s commitment to help make the energy market more competitive and fair to consumers.

It states that by switching suppliers and not rolling on to the standard variable tariffs when the current deal comes to an end, customers can save a significant amount of money.

This comes as the Competition and Market Authority (CMA) released findings from a two-year investigation, which showed two-thirds of households are paying too much for their energy in comparison to those who have switched tariff.

As many as 21 million Brits are, therefore, paying an excessive amount to work on their computer, keep their LED panels on and use their microwave, for instance.

Ofgem chief executive Dermot Nolan said: “The CMA’s final report is a watershed moment for industry and consumers and points to a fairer and more competitive future.”

He called upon energy companies and consumer groups “to seize this opportunity” to enable customers to benefit from lower tariffs and motivate them to shop around for the best deals.

Ofgem intends to launch a database service next year, which will encourage suppliers to offer better value deals and prompt consumers to start looking around for alternative options to save themselves money on their bills.

Its Be An Energy Shopper campaign to get more households to compare tariffs when their deal comes to an end hopes to save consumers £300 per year.

Earlier this year, Ofgem released data that showed more people are beginning to be savvy with their bills, with eight per cent more customers switching energy provider during the first quarter of the year compared with the same period in 2015.