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Energy companies will be urged to pass on savings to their customers in the wake of massive falls in oil and gas prices when Ed Miliband, the energy and climate change secretary, meets leaders of the big six providers today.
The minister will also ask them what progress they have made in ending unjustifiable premiums demanded from people with pre-payment meters, who are among the poorest and most vulnerable customers.
Ofgem, the energy regulator, has given the companies until December 1 to draft firm proposals, or Miliband has said he will consider legislation.
Before the meeting - the second with energy providers in a month - officials at Miliband's department were citing the example of Scottish and Southern Energy, the second largest supplier, which has indicated that it will cut prices in the new year.
Ministers acknowledge that gas companies buy their gas up to about six months ahead on the advance markets and, therefore, it takes time for gas price cuts to feed through to bills. But ministers are under public pressure to act and want other firms to make the same commitments.
Scottish and Southern, with 8.9 million customers, will have to cut prices substantially if it is to compensate for its massive rises this year. In August, it raised gas prices by 29.2% and electricity by 19.2%. EDF Energy raised prices by 22%, British Gas by 35%, E.ON 26%, Scottish Power by 34% and Npower by 26%.
Most firms have pushed up electricity prices by between 9% and 14%.
Ministers have been backed by the chief executive of the new watchdog Consumer Focus (CF), which has called for swift price cuts. Ed Mayo told a committee of MPs that he wanted one of the big companies to break ranks and pass on price cuts or explain why not. But the Energy Retail Association said there was no case for hasty action.
A recent Ofgem report gave the big six suppliers a relatively clean bill of health, saying they were not colluding on price and that the market was working well for most consumers.
Ministers have asked for an extra £225m to be invested by the energy companies in social tariffs. Ministers want to increase the number of people on social tariffs, with the Department of Work and Pensions telling the energy companies which of their customers are on pension credit.
In a sign that public anger at pre-payment meters has not dissipated, CF said at the weekend that it estimated power suppliers were making more than £500m a year in extra charges from people on prepayment meters.
Jonathan Stearn, CF's campaigner on disadvantage, said energy firms were using customers who pay for their gas or electricity through pre-payment meters to help subsidise cheaper deals for others.
"Companies could be making up to £550m a year from extra charges they charge on pre-payment meters," he said. "The energy companies are making the most money out of those on pre-payment meters and often those are the people on the very lowest incomes."
National Energy Action (NEA), the energy awareness group, said pre-payment-metered customers paid on average £359 more a year than those with normal meters. This contrasts with the extra annual cost of between £85 and £100 to maintain the pre-payment boxes as estimated by Ofgem, the charity added.
An NEA spokeswoman claimed 7,000 people a day were being put on pre-payment meters, with many forced to do so after falling into debt. Ofgem has estimated that pre-payment meter customers are missing out on savings worth £250m.
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