A new package to help people with energy bills is expected to be funded by a windfall tax on firms.
The Treasury said the government understood "that people are struggling with rising prices" and said Mr Sunak had been "clear that as the situation evolves, so will our response".
The current Warm Home Discount scheme offers low income households a £150 one-off annual discount on their electricity bill between October and March. Chancellor Rishi Sunak announced in February the scheme was being extended to March 2026 and opened up to three million people. It means the typical household bill could rise by £800 per year to £2,800 and Ofgem warned 12 million households could be placed into fuel poverty.
Shell reported a record £7bn profit in the first three months of this year while BP made £5bn, the highest for 10 years. Proposals to tax income from other electricity producers such as some older windfarms and nuclear plants which have also seen windfall gains have been shelved. He warned that the price cap could rise beyond £2,800 if Russia - one of the world's largest exporters of natural gas - decided to disrupt supplies.
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