Ministers have concluded that something needs to be done before prices rise on April 1 as the price cap is increased, but have not yet decided what form this will take.
Fears of runaway bills for UK households in the new year have been mounting since September as the cost of gas in wholesale markets rose by more than 500 per cent in less than 12 months
Liberal Democrat leader Sir Ed Davey warned energy bills will be the worst possible gift this Christmas as the party found households will pay £100 million more this year.