The NSW government has moved to rein in surging electricity prices.

From midnight tonight it will cut the price paid for electricity bought under its generous solar power scheme.

And it will review capital spending by power companies.

Household power prices have already risen by up to 13 per cent this year, and within three years they could go up by 42 per cent under power company increments approved by the federal and state governments.

NSW Premier Kristina Keneally said today the review of spending plans by the electricity companies would be concluded in time for them to make revised applications to the federal government's Australian Energy Regulator by early next year. That could see a slowing in price rises.