Kwasi Kwarteng is planning to clamp down on wind and solar energy firms as a new forecast predicted the energy price cap will hit £6,000 in April.
The Telegraph can reveal Mr Kwarteng, the Business Secretary, is also preparing to intervene in the energy market in an attempt to stabilise the “crazy” profits of renewables firms.
Around a third of wind and solar producers are on inflexible legacy contracts, which have earned them billions from the high price of electricity during the energy crisis.
Mr Kwarteng is planning to offer the firms a favourable fixed-term rate at which to sell energy to suppliers for 15 years if they agree to stop selling cheap renewables at high wholesale prices.
Lord Callanan, a business minister, told MPs privately this week that ministers could launch a windfall tax on renewable producers that have not seen their costs increase while wholesale prices have risen.
But Ms Truss, who is widely expected to win the leadership contest, has already ruled out such a tax and promised savings by pausing green levies on bills.
The RO scheme, which has allowed renewable producers to make billions in profit, is funded by a green levy that costs the average bill payer £75 each year
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