The UK government is considering paying firms for cutting electricity use as part of plans to try to save energy and reduce costs.

It is one of a number of proposals to be published alongside the Energy Bill. Last week the government announced plans for households to spend nearly ￡100 a year subsidising renewables and nuclear.

Energy Secretary Ed Davey told BBC News that the measures were part of a plan that would make energy generation less polluting and more affordable in the long term.