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Ministers agreed to scale back the Energy Company Obligation (Eco) scheme that cuts the fuel usage of poor households, while funding another subsidy out of taxation, reducing average energy bills by £50.
British Gas said the average bill would rise by £70, rather than £123, after the government scaled back a programme to help poor households cut their energy usage and said it would pay for another subsidy out of general taxation.
So the EU's negotiating position will probably be as proposed by the European Commission: let the newcomers start with 25% of the level of direct payments available to current members, rising to 100% by 2013; and no commitment to phase this sort of subsidy out.
Ed Vaizey, Conservative MP for Wantage and the minister in charge of the national broadband rollout, said: "We want to ensure that we can get a subsidy out to areas where it's not economic to provide broadband.
Pulling this subsidy out now, three months after the worst disaster in the Western Hemisphere seems too abrupt.
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And if it manages to phase subsidies out slowly, analysts say, demand for fuel is likely to remain strong.
Despite subsidies, out-of-pocket (OOP) expenditures are significant and have a disproportionate impact in lower income groups (Harris et al. 2011) and rural, underserved areas (Goudge et al. 2009).
Industrial subsidies, housing subsidies, even food subsidies flowed out in an effort to buy low pay settlements.
The subsidy phases out for those earning more than $125,000 (or $250,000 for families).
Crunch the numbers and a theoretical "Hinkley subsidy" works out to about £24 per household a year at current prices.
But it has also imposed a cap on the total subsidy paid out, meaning the rate of domestic solar installations is set to halve, according to the Solar Trade Association.
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