The chief executive of Ofgem is due to meet with the Treasury Minister Alistair Darling late this week to discuss its concerns over rising energy prices.
Ofgem would like to see the profits of electricity companies ploughed back into helping those that are struggling to pay their bills.
According to energy companies their profits are due to prices rises in electricty that reflect the price of permits to emit carbon dioxide in the EU's emissions trading scheme.Ofgem estimates that the cost of permits accounts for only 17% of the whole electricity price.
The Association of Electricity Producers has warned that such a move "would send the damaging signal to investors in a vital UK industry."