She repeated Labour calls for Ofgem to be scrapped and replaced with "a tough new regulator".
BBC: Gas price-fixing allegations 'very serious', Davey says
Earlier this year, the regulator Ofgem told energy companies they must offer simpler tariffs.
The regulator Ofgem has warned energy firms not to shield information about complaints from the public.
But it said it would need financial support from developers and approval from regulator Ofgem.
Ofgem, the energy regulator, is investigating, and will report at the end of the month.
"There is no cost-reduction target in the price control, " said Ofgem communications manager Mark Wiltsher.
Ofgem's proposals will be published for consultation on 27 July, with final proposals due by December 2012.
Ofgem predicts that they will rise by around 60%, in real terms, over the decade to come.
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On UK has become the latest firm to have its sales techniques investigated by the regulator Ofgem.
Ofgem is proposing to limit each energy supplier to no more than four core tariffs for each fuel.
Ofgem says it will open investigations into six UK energy companies for failing to meet government energy efficiency targets.
"I'm delighted to see this ridiculous inequality is to disappear and that Ofgem has recognised the anomaly, " he said.
Ofgem has proposed that utilities must auction 20% of their electricity by 2013.
On said it was disappointed by Ofgem's action as its sales staff had acted responsibly, and by the rules.
He added that proposals, which would be influenced by Ofgem, would be published at the time of the Budget.
Ofgem said the proposals, which the industry has described as "challenging", would make the market "simpler, clearer and fairer".
Mr McCarthy enjoyed a reputation as a tough operator during his four years as head of energy watchdog Ofgem.
Britain risks running out of energy generating capacity in the winter of 2015-16, according to the energy regulator Ofgem.
Regulator Ofgem said that it was making plans to cut the number and complexity of tariffs available to domestic customers.
Ofgem wants to reform those markets to allow greater competition with the big suppliers and will publish proposals in December.
Well, I would reckon somewhere between 15% and 17% based on Ofgem's account of what has been happening to tariffs.
Shadow energy secretary Caroline Flint told delegates at her party's conference "the time has come to say goodbye to Ofgem".
For several years, they have been busily lobbying the government and the energy regulator Ofgem for some sort of plan.
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Ofgem chief executive Alistair Buchanan described the reforms as "the most radical shake-up of the energy bill market since competition began".
Energy UK, which represents the energy industry, said Ofgem was right to highlight the challenges it faces in the coming years.
Ofgem welcomed the move, saying that British Gas had recognised that suppliers need an "open and honest dialogue" with their customers.
However, it said the move depends on energy regulator Ofgem putting in place the approval and funding regime for the extra spending.
If the energy companies do not co-operate with Ofgem's proposals the government says it will force them to using the new legislation.
Energy regulator Ofgem has reiterated its plans for "tough new standards of conduct" to ensure a "simpler, clearer and fairer" energy market.
The Financial Services Authority (FSA) and energy regulator Ofgem are investigating claims that the wholesale price of gas has been artificially lowered.
BBC: Gas price-fixing allegations 'very serious', Davey says
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