Domestic electricity bills could rise under plans being drawn up by ministers in a bid to help pay for a new generation of nuclear power stations, according to British media reports.

The British Government is concerned that without a ‘carbon levy’ on conventionally-produced power, nuclear firms could be reluctant to invest in the UK, according to a report in the Guardian newspaper.

According to the report, the Office of Nuclear Development (OND) has told firms it will keep the price of carbon in the EU emissions trading above €30 per ton.

Energy consultancy firm EIC calculated the carbon levy would add £44 to the £500 annual electricity bill paid by an average household.

A spokeswoman for the Department of Energy and Climate Change said there were ‘no current plans of this sort’.