The government is developing plans to hike the costs of conventional fuel to attract investment for new nuclear.
Domestic energy bills could rise by some £44 per year under from a ‘carbon levy’ on conventional power.
The Office of Nuclear Development (OND), set up by Lord Mandelson’s business department, had told firms it would keep the price of carbon in the EU emissions trading above 30 euros per tonne.
Hiking the price of conventional sources of power would make new nuclear more attractive to investors.
Energy consultancy firm EIC has calculated the carbon levy to add £44 to the £500 annual electricity bill paid by an average household.
A spokeswoman for the Department of Energy and Climate Change said it there were “no current plans of this sort”.
The UK was “going all out for an ambitious deal at Copenhagen”, she added.