On Monday, members of Congress will be briefed on the new program, although it is believed that firms would receive less assistance at a time when many are still struggling with mounting costs.
When the existing scheme expires in March, all firms will receive further taxpayer support for their energy bills, but at a reduced cost to the public.
Following last week’s discussions with industry leaders, the government is expected to announce Monday evening. That it has decided to reduce wholesale prices for up to one year.
It would replace the set price on wholesale energy expenses that the Treasury estimates would cost £18 billion over the remaining six months of the Energy Bill Relief Scheme.
The Chancellor, Jeremy Hunt, referred to this expense as “unsustainable.
From April, it is believed that the specifics to be published in the House of Commons on Monday afternoon. It would include a higher level of discount for energy-intensive sectors, such as steelmakers.
The announcement will be made against the backdrop of business frustration with the amount of time it has taken ministers to agree on the extent of the extra taxpayer assistance.
Businesses will lose energy bill discounts in April.
The hospitality industry, for instance, has warned that an excessive reduction in the degree of support given to enterprises will result in a spate of businesses failing.
There is currently no information regarding the discount level.
Current wholesale pricing, however, provides a ray of optimism for suffering businesses.
Despite the ongoing conflict in Ukraine, gas prices have fallen significantly from their recent peaks. Due in part to Europe’s mostly mild winter so far.
The day ahead gas costs in the UK. Which were 570p per therm in August of last year, were 158p on Friday.
Contracts for the upcoming months were only ahead of this pre-Russia invasion price level, a 15-month low.
ICIS’s director of gas analytics, Tom Marzec-Manser, stated: “Concerns that there may not be enough natural gas to meet demand this winter have begun to subside.
“But this does not mean the situation is resolved.
“The forthcoming summer must be used to replenish storages so that they are ready for next winter. And refilling these storage facilities will be far more difficult than it was the previous year. As there will be significantly less Russian gas accessible.”
