Energy Secretary Ed Davey said he would not flinch from breaking up the Big Six companies if the evidence from the CMA was strong enough to suggest market intervention as the next step.
The Liberal Democrat minister also said the energy companies were treating loyal customers “unfairly” by not offering the cheapest deals.
He told BBC Radio 4’s Today programme: “If the evidence from the CMA is strong that the next step ought to be breaking up a company, if the Competition and Markets Authority recommend that…we would not flinch from taking that tough action.”
Mr Davey added in a statement: “My message for consumers is the same as these early findings – don’t stick with a supplier if you’re not satisfied – now’s the time to shop around for a better deal, switch suppliers and save.”
Shadow energy secretary Caroline Flint said: “This report confirms that Britain’s energy market is broken and that radical action is needed to protect consumers.
“Energy bills are £300 a year higher under the Tories, and David Cameron has let the energy companies get away with overcharging millions of consumers.”
Labour is pledging to freeze energy prices until 2017 if it wins the next election.
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