The watchdog for the energy sector will shortly be setting out plans to make the retail energy market work better for all consumers.
Ofgem's comments came after a letter was published by Greg Clark, the secretary of state for energy, in which he said to "proceed without delay" in advising him on what action to take.
Ofgem said: "We share the government's concern that the energy market needs to work better for all consumers and that energy companies need to do more to help loyal consumers get a better deal.
"We have received the secretary of state's letter. We will shortly be setting out the work we have underway and further options we can explore in the light of the government’s plans."
In the run up to the General Election, Prime Minister Theresa May vowed to introduce a cap on standard variable energy tariffs to bring down prices.
Today's Queen's speech did not mention the price cap, but it said: "We have committed to extending the price protection currently in place for some vulnerable energy consumers to more of those on the poorest value tariffs."