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The taxpayer could hand energy firms huge subsidies to stop them hiking bills for customers when gas costs soar, under plans being looked at by ministers.
The mooted 'temporary price stabilisation mechanism' would kick in when wholesale costs go over a set threshold.
Firms would agree not to increase bills for consumers in return for the money - but they could also repay it when prices go below the agreed level.
According to the Financial Times, Rishi Sunak recognises that the proposals could leave the government heavily exposed to prolonged high gas costs.
But the Chancellor and Boris Johnson are increasingly desperate to find a way of easing the pressure on households, with bills on track to rise by another 50 per cent in April and wider inflation spiking.
Rishi Sunak (pictured today) and Boris Johnson are increasingly desperate to find a way of easing the pressure on households, with bills on track to rise by another 50 per cent in April and wider inflation spiking
A Resolution Foundation report yesterday warned that more than six million could be plunged into financial stress by soaring energy bills
Wholesale gas prices have been rising sharply for several months in the wake of the pandemic, and as tensions run high with Russia
Downing Street refused to comment on the idea, saying: 'There's obviously ongoing policy discussions taking place across government on
