CHEAPER energy bills could be offered to rural communities that agree to local shale-gas extraction.

Fracking involves forcing shale-gas out of the ground by blasting water into rocks. But environmentalists say the practice can cause earth tremors and contaminate water supplies.

Rural communities who allow shale-gas extraction could be offered funding for new amenities such as a new sports club or community centre, according to the Financial Times.

"The government is proposing to bribe communities with cheaper energy bills in exchange for dropping opposition to local fracking projects," it reported on Monday (29 April).

Several options to cajole rural England to accept the contentious drilling schemes are being discussed, the paper said.

Citing sources "familiar with the discussions", the FT said the biggest incentive being discussed by the coalition was cheaper household energy bills for people in a fracking area.

The House of Commons energy select committee said last week that communities affected by shale-gas projects "should expect to receive, and share in, some of the benefits of development".

It suggested that local authorities hosting shale ventures should also be allowed to retain business rates.

The full FT article can be read by clicking here.