Electricity suppliers are set to face de facto price regulation and a potential $100 million-plus hit to retailing revenues after federal Energy Minister Angus Taylor said the Morrison government would introduce a default market offer to replace existing expensive standing offers.

In a further intervention by the Morrison government into the energy market just before the May election, the default market offer — proposed in a draft ruling to be released by the Australian Energy Regulator on Saturday — would act as a "safety net" for electricity customers who were unable to negotiate a better deal off their retailers.