Government in £300m energy bill rebate

Nick Clegg has challenged the big energy companies to 'come clean' (EPA)

The Government is reportedly planning a £300m rebate to help with the rising cost of energy bills.

According to Sky News, there will be a £12 rebate on every domestic electricity bill in the country.

The inflation-stripping rises in energy costs has been a headache for the coalition for months. In October the Labour leader Ed Miliband promised a Labour government would freeze energy prices for 20 months. This came ahead of large price rises from most major energy companies.

Mr Cameron had dismissed Miliband's promise as a "con," instead encouraging consumers to switch suppliers to keep bills down.

The discount would reportedly be funded by switching the funding of the Warm Home Discount from the energy companies - who currently fund - it to general taxation.

Sky News also cites insiders saying the Government package would include an agreement with distribution network operators, which includes the National Grid, whose charges account for approximately 20 per cent of consumers’ bills.