The new scheme, which will run until the end of March 2024, will be capped at £5.5bn – less than a third of the current £18bn cut-off.
The announcement will help businesses locked into contracts signed before recent substantial falls in the wholesale price manage their costs.
It will also provide security against the risk of prices rising again.
NCVO chief executive Sarah Vibert said she would be meeting Treasury minister James Cartlidge to find out more and called for a “long-term plan”.
She said: “Tonight, we welcome news of the new discount scheme but need to know what it means for charities. I’m pleased to be meeting Treasury minister @jcartlidgemp later to discuss details.”
Vibert added: “We know that even with this scheme, charities are facing costs they can’t afford. Demand is far out-stripping resource. I welcome the opportunity to meet with ministers across government and will be making our warning clear: charities are at breaking point, a solution must be found.
“We want to see political, energy and charitable leaders come together to positively work on a long-term plan that ensures we’re never in this situation again. We have it in our power to collectively solve this problem.”
Under the new scheme, firms will get a discount on wholesale prices rather than their costs being capped as under the current one.