Ministers plan to change the way the levies on energy bills work, rather than cutting them entirely.
Reports from the BBC claim government insiders have said they want the Energy Companies Obligation (ECO) introduced earlier this year to be implemented over a longer period – four years instead of two.
They also want the Warm Homes Discount scheme to be paid for out of general taxation rather than from peoples’ energy bills. The sources said regulations could be altered as well in order to reduce transmission charges.
Ministers are said to hope these changes will take £50 off the average bill, thereby showing the public that the government is doing what it can to help with the rising cost of energy.
DECC said it was unable to comment on the reports.