The Chancellor is considering imposing a windfall tax on energy companies amid the public 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 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.

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

The energy sector was dealt a blow last night after the French company EDF withdrew at the eleventh hour from a £12 billion deal to take control of the bulk of Britain’s nuclear industry. The Government had hoped that the deal, which was due to close today, would encourage building of a new generation of nuclear power stations.

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 expansion into low-carbon and renewable energy sources, such as wind-farms and nuclear power stations. He fears that a draconian levy could deter foreign companies from operating in the UK and further damage the Government’s relations with business.

Supporters of a windfall tax believe that it would be welcomed by voters and help to rebuild support for Gordon Brown’s embattled Government.

One minister said that “robust” discussions were taking place. “These are dire circumstances,” he said. “We cannot have a situation where 85-year-olds could be cold this winter while the big energy companies are raking in big profits.”

Soaring fuel prices are at the centre of voters’ discontent with the Government and both Mr Darling and Mr Brown know that they must be seen to help to alleviate the crisis.

The Chancellor’s hands are tied, given the depleted state of Treasury coffers. Insiders say that a windfall tax would be an easy way to address the problem and score points with voters. “Alistair is very conscious there’s an upside and a downside,” one aide said.

Sam Laidlaw, chief executive of Centrica, rejected calls for a windfall tax. “Our profits are down 40 per cent after tax,” he said. His company incurred a tax rate of 58 per cent, making it the most heavily taxed company of the FTSE100. He added that Centrica needed to invest billions of pounds in new power generation capacity.

The Commons Business and Enterprise Select Committee said that there was a compelling rationale for a windfall tax. Peter Luff, its chairman, told The Times there would be support for a levy that would raise about £300 million, which would be earmarked for the fuel-poor. “ The politics of that are really very attractive,” Mr Luff said.

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