THE government may force power generators such as Drax, British Energy and International Power into paying for part of the £1 billion fuel-poverty package it hopes to unveil this week.

The plan would require pure electricity generators that have no retail supply businesses to contribute for the first time to fuel poverty alleviation.

Under the scheme, generators would be required to pay up to £150m towards a beefed-up energy-efficiency programme.

Until now, only the “big six” utilities have been forced to volunteer cash to help those struggling to pay their bills.

Talks over an additional £750m in voluntary contributions stalled last week and Gordon Brown has dismissed the idea of a windfall tax on the industry.

The government plans instead to force through a programme by increasing by up to 30% the money that companies are required to invest in the Cert programme, a three-year, £3 billion scheme that obliges them to pay for measures such as loft insulation.

The government wants generators to shoulder 5% of the increase, while the utilities would stump up the rest.

However, it is unclear whether the government will succeed, as including generators in the scheme would require new legislation.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts