The Prime Minister has indicated the Government is set to crack down on sky-high energy prices, and warned that relying on customers to switch energy suppliers to save money "is clearly not working".

Addressing the Conservative Spring Forum in Cardiff, Theresa May said the Government was "looking very closely" at ways to address the problem and vowed plans will be announced "very soon".

She said: "Energy is not a luxury, it is a necessity of life. But it is clear to me – and to anyone who looks at it – that the market is not working as it should."

Highlighting the fact that energy prices have risen by 158% over the past 15 years, she added: "Relying on switching alone to keep prices down is clearly not working."

To see if you can switch and save £100s on your energy bill, use our free Cheap Energy Club.

May's comments come a day after the issue was debated in the House of Commons, with several MPs supporting the idea of a "relative price cap" being imposed on suppliers as a temporary stopgap until switching becomes more popular. This would impose a maximum difference between a provider's best deal and its most expensive one.

However MoneySavingExpert.com founder Martin Lewis has opposed the idea, and last month wrote to The Times newspaper warning it would give customers "the worst of both worlds" as "some will still overpay, but many firms won't be able to offer really cheap prices". 

We've asked the Department for Business, Energy and Industrial Strategy when we can expect to hear more detail about the Government's plans on energy pricing, and will update this story when we hear back.

Additional reporting by the Press Association.

Martin Lewis
Get Our Free Money Tips Email!