The first details of a price cap on energy bills have been unveiled as the industry watchdog proposes a deal that will see 11 million customers save up to £75 a year.

The plans are to cap rip-off tariffs at £1,136, energy watchdog Ofgem has announced.

Ofgem said a typical consumer on the most expensive default standard variable tariffs would save more than £120 a year under its plans.

In total, the cap would save consumers around £1 billion, it said.

The regulator, which was given powers by the Government in July to introduce the cap, hopes to have the measures in place by the end of the year.

The Ofgem proposals would give some 11 million customers a fairer deal for their energy

Dermot Nolan, chief executive of Ofgem, said: "Ofgem has made full use of the powers Parliament has given us to propose a tough price cap which will give a fairer deal to consumers on poor-value default tariffs.

"Once the price cap is in place, all households in Great Britain covered by the cap will be protected from being overcharged for their energy.

"Consumers can have confidence that falls in energy costs will be passed on to them and if costs increase, Ofgem will ensure that any rise will be due to genuine increases in energy costs rather than supplier profiteering."

Even bigger savings

But while the cap will help millions, you can get twice as much off if you know where to look.

"Households protected by the cap will be able to save even more money by shopping around for a better deal," Nolan said.

Stephen Murray, energy expert at MoneySuperMarket, found 100 cheaper deals.

“There are over 100 tariffs available right now which are cheaper than the proposed level of the price cap at £1,136," he said.

"That means switching today could save you £250 or more, and there’s no need to wait for a price cap that would actually save you on average £75.

“It’s also worth noting the price cap can easily go up as well as down, so those savings aren’t even guaranteed.

"So don’t get lulled into a false sense of security by the political soundbites – the easiest way to bring down your bills is to go online and switch now to a competitive fixed rate tariff.”

How to switch your energy supplier

To do this you'll need:

✔ Your postcode

✔ Your current gas and electricity supplier, and the name of your tariff

✔ How much you use in kilowatt hours (kWh) on gas and electricity. You can find this on your recent bills or the annual energy statement sent by your supplier.

✔ Your bank details, if you decide to switch and wish to pay by direct debit.

Check if you have to pay any exit fees

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Get in touch with your supplier to find out how long is left on your current plan. If you're looking to switch early, you might have to pay an exit fee.

Under Ofgem's rules, if you've 42 days or less until your plan expires, you can leave penalty-free.

Be aware that if you are in debt to a provider, you might not be able to move until all outstanding payments are cleared.

Likewise, if you have a prepayment meter and owe more than £500 for energy, you may be refused the chance to switch.

How to find a cheaper energy deal

Once you've cleared all of the above, it's time to start shopping around.

Energy regulator Ofgem has a list of approved and independent comparison websites that can help manage your search in an unbiased way.

Compare at least two websites to get a feel of the tariffs and a rough estimate of pricing. Remember, not all comparison websites compare the same providers (it's the same as car insurance) so shop around for quotes from as many websites and suppliers as possible.

Here are Ofgem's suggested comparison sites (Citizens Advice also has a handy guide on how to compare prices here), you can use this virtual notepad to make note of al prices quoted:

At the Daily Mirror, we also have our own energy switching service for a hassle free comparison - you can give it a go for free here.

Energy switching jargon buster

  • 'Fixed' or 'capped' - The cheapest plans are those that are capped for the duration of the contract, for instance 18 months.

  • 'Standard' or 'variable' - These tariffs are more flexible as they're contract-free. You also won’t be a charge to switch to a different supplier.

  • Time of use - Time of user tariffs have an on-peak and an off-peak rate for electricity. The off-peak period normally falls between 10pm and 8:30am. The on-peak rate is much higher than other tariffs so opt for this one if you plan to use your energy more overnight than during the day.

  • Green - A good option if you want to reduce the environmental impact of your energy use. The energy supplier matches some or all of the energy supplied to you by purchasing renewable energy such as wind or hydroelectric.

Shop outside of the box

When comparing providers, it's not just competitive deals from the Big Six that you should watch out for.

Many smaller firms are also after your custom, and their prices can be incredibly rewarding.

Right now, MoneySupermarket figures show all of the top 30 energy deals are from lesser known providers, such as eco-friendly Bulb and Octopus - which promises to text you when it's cheapest to use your household appliances.

The current cheapest Big Six tariff is a 12-month deal from E.ON with an average annual bill of £976, but it's only available through uSwitch. Next up is a 14-month tariff from EDF, which comes in at £1,031.

Of the cheaper deals in the market, almost 25 are under £900 and all 30 are under £919. These deals are dominated by new and emerging suppliers such as Avro Energy, Economy Energy, Solarplicity, Engie and iSupply Energy.

Stephen Murray, energy expert at MoneySuperMarket, said: "The retail energy market continues to go from strength to strength, as evidenced by increased switching numbers month-on-month.

"The Big Six are simply responding by raising their prices again and again. We know that customers are loyal to well-known brands, regardless of the costs - but in the energy market, loyalty really doesn’t pay and the people who switch are the ones reaping the financial benefits," Murray added.

I've found a deal - now what should I do?

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Once you've found the best deal and tariff for your household, it's time to secure it, by contacting the provider and letting them know.

Ring them up and give them the green light. They'll then start the switchover process with a 14-day cooling off period - you can cancel at any point during this time.

Your new supplier will ask for an up-to-date meter reading, they'll then hand this to your ex-supplier for your final bill (which should arrive within six weeks). If you're in credit, you'll probably receive a cheque in the post instead.

If you get the Warm Home Discount (see below for how to apply for this), make sure your new supplier also offers the scheme.

If you have a smart meter, you’ll need to check your new supplier supports smart meters before you switch.

Energy tariffs explained

  • Dual-fuel tariffs: Suppliers offer these plans for customers who want to receive both their gas and electricity from the same provider. Dual Fuel plans usually offer discounts or incentives.

  • Fixed-price energy tariffs: A fixed rate tariff means that the amount you pay per unit of usage will be fixed for a set period of time. This type of tariff is very popular during periods of time when prices are rising, but will not be such an attractive deal when prices are falling.

  • Standard tariffs: The default tariff which you'll roll onto at the end of your plan. All suppliers offer a standard tariff, which essentially means there are no ‘frills’ such as discounts or fixed/capped price periods. Standard tariffs are usually the suppliers’ most expensive tariff.

  • Off-peak electricity tariffs: Economy 10 is when you pay normal prices most of the time, but cheaper rates (often half the price) during other 'off-peak' times. A good option if you mostly use your energy at night.

  • Tracker tariffs: Tariffs that ‘track’ below a specified rate, usually the suppliers’ standard prices. For example, a supplier might say they will ‘track 5% below our standard prices’. These types of tariff usually ‘track’ for a set amount of time and have exit fees attached.

You can switch suppliers every 28 days if you want to, but be careful to check for cancellation charges. If you have a smart meter, remember not all are universal, which means you may have to switch to a new device each time.

uSwitch recommends checking your energy bills once or twice a year to make sure you're on the best deal. You can also sign up for a service that checks (and switches) for you, such as Look After My Bills or Flipper (which charges a small fee).

If you're on a fixed term plan, with a fixed tariff rate until a given date, it's also worth making a note of the end date so you can switch around a month before.

    Money-saving tips to keep warm

    1. Don’t block radiators: Avoid putting the sofa in front of the radiator as it will absorb a lot of heat, preventing it from warming up the rest of the house.

    2. Seal your doors: Whack draught-excluding foam or rubber tape around your doors and any other cracks where the draught comes in. You can buy it at Wickes, B&Q and Homebase for around £5.

    3. Make a rice sock: You can buy teddies filled with rice and lavender that you heat in the microwave for a minute or so as a hot water bottle alternative.

      It's a pretty efficient way of getting heat into something – certainly more energy efficient than boiling a kettle full of water. But instead of spending £20 on a shop bought one, fill a sock with rice and lavender, tie the end and you have your own hand warmer.

    4. Shut the curtains: Keeping them closed is a clever - and easy - way to keep the warmth locked in. Consider investing in thermal curtains for the rooms you use the most.

      They are not that expensive and if you don’t want to replace your current curtains you can just buy the thermal lining and attach it to your existing drapes. This alone can reduce heat loss by up to 25%.

    5. Wrap up warm: It goes without saying but the more layers you have on, the warmer you'll feel.

    6. Bleed your radiator: 'Bleeding radiators' is when you let out air that has become trapped inside. Trapped air causes the radiators to have cold spots, reducing the efficiency of them. You can bleed your radiators yourself.

      To do so, follow these steps - 1) Turn on the heating 2) Once your radiators are hot, go and check each one individually to see if all parts of the radiator are warming up 3) Switch off your central heating.

      Attach your radiator key (you can buy one at your local hardware shop) to the square bit in the centre of your radiator's valve. Slowly turn the radiator key anti-clockwise – if gas is escaping you’ll hear a hissing sound. Once there is no more gas, liquid will come out and the valve will need to be closed quickly.

    7. Turning down the thermostat: Turning it down by 1 degree could cut your heating bills by up to 10 per cent and save you around £85 a year according to Energy-uk.org.