To protect families against rising gas prices, energy companies may be eligible for billions in Government loans.
Whitehall officials have been reported to be in the process of creating a loan program that would allow firms to stop having to increase household energy bills.
Companies could use the cash to spread out wholesale gas’s rising cost over a decade so that they don’t have to take it all on one hand.
Ministers are considering the plan, according to The Times, but officials believe the figure of £20billion which has been requested by the industry is ‘far too high’.
This came at a time when Boris Johnson was under increasing pressure from all political parties to fix the cost-of-living crisis.

To protect families and reduce the impact of rising gas prices, energy companies may be eligible for billions of pounds in Government loans.

Whitehall officials may be working to create a loan program that would allow firms to stop having to increase household energy bills.

Boris Johnson feels pressured by all parties to fix the cost-of-living crisis.
A new report published by a leading think tank yesterday warned that next year will be the ‘year of the squeeze’, with households facing a hit of at least £1,200.
The Resolution Foundation said the public face a choke point in April when the energy price cap is due to be increased and a 1.25 percentage point increase in National Insurance contributions (NICs) comes into effect.
Labour and Tory MPs have called on the Government to end the tax increase.
According to a Government source, The Times was told by a government official that when you add all of it together we are in a very difficult situation.
They said the Government needs to start announcing remedies to the cost of living crisis ‘soon’ because ‘at the moment there’s nothing — just government policies making it worse’.
Global gas prices have reached record highs in recent weeks, with 26 energy suppliers having gone bust this year.
Estimates suggest the record prices will leave the industry and consumers with a bill of between £15billion and £20billion next year.

Some experts have warned that surging wholesale gas prices could add as much as £1,000 to household bills next year

What the future cost of living will look like – before there is an inflation spike
The industry could use a loan program to cover the cost of current wholesale gas, while protecting consumers from a significant increase in their bills each year.
Spreading the loans over a decade would allow firms to pay the cash back gradually, for example at a rate of £2billion a year if the Government agreed to the £20billion fund.
Kwasi Kwarteng has received warnings from suppliers about the possibility of doubled energy bills if prices are not reviewed.