Speaking at a Treasury Committee hearing on the cost of living package announced last month, Chancellor Rishi Sunak told MPs: ‘We are having those conversations urgently with the [electricity] industry to ascertain the scale of those extraordinary profits.’

When pressed on the proposals, he added: ‘I can’t say much more about that as it is a live tax policy that is being developed – natural gas prices are very high. We’re working urgently with industry to see why those extraordinary profits were produced and how big the profits are.  As soon as we can we will bring this forward… which will be urgently, and that does not mean months. In terms of the energy market reform this is something we have to get right.’

The Chanc