Energy secretary Ed Davey has delivered the Annual Energy Statement 2013 to the House of Commons.
In his statement to parliament, Mr Davey set out the “robust” plans to deliver affordable energy security.
He said: “To deal with the problem of tightening electricity margins up to 2018, the government has been working with National Grid and Ofgem to develop existing safeguards to have more electricity available for the grid at peak times, including, if needed, the use of power plants currently mothballed.
“We are introducing to Britain a Capacity Market to ensure we attract the investment we need in new power stations.
“The first Capacity Market auction will take place next year - for delivery from the winter of 2018.”
Mr Davey said latest estimates suggest that at least £35bn has been invested in new electricity infrastructure since 2010 with more in the pipeline.
The Warm Home Discount will also reduce the energy bills of two million vulnerable households by £135.
Around twelve and a half million pensioners will get the Winter Fuel Payment – £200 for those under 80 and £300 for those over.
There are also Cold Weather Payments if needed, which last year delivered over £146m to help cut bills for the most vulnerable.
While these are all short-term measures, Mr Davey said long-term change will be implemented through the Energy Companies Obligation scheme, which will modernise homes and make it cheaper to heat our homes.
Mr Davey said: “230,000 low-income households will be warmer this winter thanks to energy-efficiency measures already installed through the ECO.”
It was also stated that the government has been determined to take on the ‘big six’ energy suppliers for consumers. Measures to deregulate have seen a growth in the number and size of independent energy suppliers, he added.