Liz Truss is set to announce a new £130 billion plan to freeze energy bills for UK households as the cost of living crisis sends costs soaring for families across the country.
Bloomberg reported the price tag would be spread over the next 18 months, which would see a new price cap set either at or below the current price cap of £1,971.
The energy price cap had been scheduled to rise 80% to £3,548 in October, snowing families under thousands of pounds in spiking costs.
However, the new proposal would apparently see the price cap alteration ditched.
Funding now stands as the next issue, with the Financial Times reporting that Truss is attempting to persuade nuclear and renewable energy generators to accept new 15-year contracts at fixed prices on a voluntary basis below the current rates, which tie their profits to surging gas prices.
Business secretary Kwasi Kwarteng, who has been the favourite to take on the chancellor role under the Truss administration, is allegedly seeking to fund the initiative via general tax or a future consumer bills levy.
Meanwhile, Truss is also said to be eyeing a £40 billion business relief plan to assist struggling businesses with rising energy costs.
Bloomberg said the new Prime Minister was undecided between a guaranteed unit price for companies to pay, or a percentage or unit price reduction for energy suppliers to offer firms.