The Chancellor is considering a windfall tax on energy companies amid the outcry over record increases in fuel bills.

Alistair Darling’s aides say that he is looking at measures to help families struggling to meet the rising cost of energy and food. These include a one-off tax on record profits earned by energy companies as a result of a surge in the price of oil and gas. The money would be used to help the poorest to pay their fuel bills.

Today Centrica announced profits of £992 million for the first half of 2008. The news came a day after its subsidiary British Gas raised domestic fuel prices by 35 per cent. Shell, the oil giant, stunned motorists with profits of £4 billion for just three months.

The Times understands that there is a growing tension within the Government over the windfall tax, with John Hutton, the Business Secretary, leading the campaign against any attempt to “punish” energy companies.

Mr Hutton has argued that energy companies require huge sums to pay for Britain’s massive expansion into low carbon and renewable energy sources, such as windfarms and nuclear power stations.

He fears that a draconian levy could deter foreign companies from operating in the UK and damage the Government’s already battered relations with business.

The French company EDF is tomorrow poised to take control of the bulk of Britain’s nuclear industry in a £12 billion deal that the Government hopes will kickstart building of a new generation of nuclear power stations.

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