Tory ministers will hold a crunch meeting today with energy firms over soaring bills where a windfall tax is on the table - despite Liz Truss not wanting it.
Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng will press British Gas, RWE, E.ON, SSE and National Grid for solutions as bills are expected to top £4,200 a year from January.
The pair will ask gas and electricity company executives to submit a breakdown of expected profits and payouts as well as investment plans for the next three years.
Officials are keen to work on options soon so the next Prime Minister can take decisions “swiftly”.
A Treasury source had said all options were being kept open, including expanding the 25% windfall tax on oil and gas producers - who are not the same as the supplier firms in today’s meeting.
But the Mirror understands Liz Truss is against introducing another windfall tax - which means it’s unlikely to be brought in.
And a source close to the favourite for next PM told the Yorkshire Post: “Windfall taxes send the wrong message to businesses.
“They might secure more money in the short term, but in the long term all they do is create greater uncertainty and make businesses fear they’ll be penalised for generating profits.”
It came as Gordon Brown called for energy firms to be temporarily re-nationalised as a “last resort” until “the crisis is over”.
The former Prime Minister said the energy price cap should be frozen - axing plans for it to go up from £1,971 now to around £3,600 in October and over £4,200 in January.
Energy supplies’ ‘actual costs’ should be assessed, social tariffs and standing charges made fairer, and separate company agreements negotiated to keep prices down, he said, while businesses should cut consumption.
Mr Brown wrote in The Guardian: “If the companies cannot meet these new requirements, we should consider all the options we used with the banks in 2009.
“Guaranteed loans, equity financing and, if this fails, as a last resort, operate their essential services from the public sector until the crisis is over.”
Around 30 energy suppliers have already gone bust as prices rise, despite the soaring cap on Brits’ bills.
Ahead of today’s meeting, the Chancellor told reporters: "I think it's important we all get round the table.
“I will continue to do the work I need to do as Chancellor, but I also want to challenge them, to say are you making the investment? How can you help your customers? What more can we do together? That's the reason for the meeting."
He added: "The other area I want to look at is some of the energy producers, if you look at the renewable energy producers, the amount that they get paid is linked to gas prices.
"So, they haven't changed anything they're doing, they haven't had any increase in their input costs at all, but they're getting a much higher return because of the unusually high gas price because of Putin."
Boris Johnson has refused to act until a new Prime Minister is in place and Liz Truss has rebuffed calls to sit down with him and Rishi Sunak and draw up an emergency plan.
She has branded direct cost-of-living payments “Gordon Brown-style economics I don’t support”, but hasn’t ruled them out. She hinted at a U-turn yesterday, saying: “I understand how difficult the rising cost of living is making life for many, and if elected I will do all that I can to help struggling households.”
But suggesting help could take until Spring, she said: “I will act on day one but it will come in well before April, which is when traditionally the tax year starts.”
Rishi Sunak has said he would top up cost-of-living payments by a “few hundred” pounds, targeted at the most vulnerable. Money Saving Expert Martin Lewis says he needs to add £1,200 for the package to be fair.
