Energy firms could benefit from a £20billion fund to help lower gas and electricity bills this spring.
These companies have asked ministers for taxpayer-funded support to reduce the high wholesale gas price.
Kwasi Kwarteng was warned by suppliers about the possibility of doubled energy bills in April, unless he gets help.
Global gas prices have reached record highs in recent weeks, squeezing companies that are subject to the UK’s price cap – £1,277 per year. This year, 26 of the world’s largest energy providers have been bankrupt.
The record prices will leave the industry and consumers with a bill of between £15billion and £20billion.
An industry source told The Daily Telegraph: ‘The UK faces doubling or trebling of bills.
Gas suppliers have warned Business Secretary Kwasi Kwarteng (pictured) that energy bills could double in April unless help is offered
‘The global cost of energy will be £20billion higher than in a typical year.
“We must spread it across a number years.
‘There’s no need for government handouts, it’s just about spreading the cost.’
It is understood that ministers could facilitate a deal that would see the industry given access to a £20billion fund, which they could repay at a rate of £2billion a year over ten years.
This would help companies cover the cost of the short-term spike in wholesale gas prices and allow suppliers to keep a lid on consumers’ bills.