David Cameron has said that he is determined to “roll back” the cost of environmental and social charges that are added to customers’ bills.
Energy firms have blamed the green levies for the recent increases in household fuel bills. The companies say the levies typically add £112 to an average annual bill. They pay for home-insulation schemes and subsidies for wind farms and other renewable power schemes.
Ministers are under growing pressure to act after several energy firms announced price rises of more than 8 per cent in recent weeks.
Ed Miliband has promised to freeze energy bills for 20 months if Labour wins the next election, a pledge that Conservatives privately fear could cost them votes.
George Osborne, the Chancellor, is considering how to reform the energy schemes, including whether to switch the cost of environmental and social projects from bills to general taxation.
Green tax to knock £75 off energy bills