Plans by Ofgem to introduce a price cap for pre-payment customers would not solve fundamental problems with the energy pricing system, according to Energy Advice Line.
Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said the proposal aimed at helping vulnerable customers did not include incentives for more people to engage with the market and switch suppliers.
"Ofgem has announced it will go ahead with recommendations made by the Competition and Markets Authority (CMA) in its report earlier in this year for four million pre-pay customers to have their energy bills capped," Mr Morgan said.
"It is true that these customers need help because they're paying an average of £220 a year more than those on the cheapest deals, because suppliers say pre-meters are more expensive than standard.
"But the plans do not address the energy market's fundamental problem. More than 70% of the customers of the Big Six suppliers are on standard tariffs - by far the most expensive on the market. Quite simply, they are paying far more than they need to, and this isn't fair.
"The CMA report didn't go far enough to incentivise the vast majority of customers who are disengaged from the market and paying over the odds."
Bosses at First Utility, one of the UK's smaller energy companies, has suggested that Big Six customers who do not switc hsupplier after a certain period of time should automatically be flipped to the best tariff.
In this report, the CMA admitted that customers on the most expensive tariffs could save £300 a year by switching, but other than the price cap for pre-payments, did not make suggestions incentivising enough to encourage more people to switch.
It recommended that current rules limiting suppliers to a maximum of four tariffs should be scrapped in order to promote more competition. It suggested that energy firms that supply micro-businesses - those that employ fewer than 10 people - should be forced to be more transparent, by publishing their prices.
The report also said that these tiny SMEs should not be locked into expensive 'roll-over' contracts.
"These suggestions are all well and good, but will do little to reduce the pain of householders and businesses struggling with high bills, or encourage them to shop around and switch," Mr Morgan said.
The Energy Advice Line is a consumer champion and an independent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.
The service also offers free advice and a contract management service, including alerts to remind business consumers when their fixed-term energy contracts are about to end.
For further information, visit energyadviceline.org.uk