Up to 15 million households could benefit with the poorest households expected to receive the biggest rebates.
It comes as the energy regulator Ofgem is expected to announce that the energy price cap will rise by 50 percent to as much as £2,000 over the surge in wholesale gas prices.
Energy UK, which represents suppliers, said a survey had shown a quarter of people would not be able to afford a £50 increase in their bills.
Among those earning less than £20,000 this figure rose to 45 percent.
Emma Pinchbeck, chief executive of Energy UK, emphasised the need for government intervention when speaking to The Times.
She said: “There is a need for Government to act, as other Governments already have, to make a real difference to bills.”
According to The Times, industry sources say the Government may have to intervene later in the year if prices still remain high.
There are also predictions from some analysts that the price cap will need to rise again in October.
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