Ofgem has proposed a change to energy supply terms to allow customers to switch their supplier within 24 hours.
The regulator claims this would improve switching reliability and provide an improvement in management and oversight.
A new service dubbed the Centralised Switching Service (CSS) will be introduced to already ongoing changes happening within the gas and electricity markets.
Under the proposals, switching requests sent by 5pm would allow the customer to be switch to their new supplier by midnight the next working day.
Businesses requesting to switch supplier would have to wait an extra working day for their changes to take effect.
The proposals include the possibility of introducing a new regulation which would ensure all suppliers switch their new customers within 5 days of a contract start date.
Ofgem will then scrutinise the regulations and look at tightening them to ensure all suppliers provide a next day service.
It is thought the new service could save consumers between £169 million and £1 billion.
An Ofgem statement says: “We want to let consumers switch energy supplier reliably and quickly, including by the end of the next working day if they choose.”
“We will do this by simplifying and harmonising the gas and electricity switching arrangements in a cost-effective way.”
“This will build consumer confidence and facilitate competition, delivering better outcomes for consumers.”