Under the new bill, the coalition wants energy suppliers to guarantee the lowest possible prices for vulnerable households.
It is also aiming to propose an energy efficiency programme to "fuel poverty proof" homes in fuel poverty, to bring them to levels of modern properties.
Jonathan Stearn, fuel poverty campaigner for Consumer Focus, said there can be "no shortcuts or the scandal of fuel poverty will never end".
He added: "Thousands of families and older and vulnerable people will have to choose between heating and eating, not just this winter but in the years ahead.
"This scandal must be stopped once and for all."
The Times recently claimed that over 11,000 UK households are having to pull out of the government's Warm Front scheme because they cannot afford their share of the heating and insulation upgrade costs.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.