Ofgem today warned there will be a 'significant rise' to the cap on energy bills - hitting millions of Britain's poorest people.
The energy crisis has been blamed, in part, on a shortage of natural gas caused by Vladimir Putin allegedly 'choking' supplies to Europe to pressurise regulators into approving the controversial Nord Stream 2 pipeline.
Today Boris Johnson waded into the row, branding the link a threat to energy security and suggesting the decision to bypass Ukraine to bring supplies direct to Germany would damage the Ukrainian economy.
A No 10 spokesman said: 'Although Nord Stream 2 will not directly impact the UK's energy security, it could have serious implications for central and eastern European countries.
'Some European countries are nearly wholly dependent on Russian gas, which raises serious concerns about energy security.'
In comments reported by The Times, the spokesman also warned about the damage to Ukraine, which currently hosts the largest pipeline network for Russian gas and benefits from large transit fees.
He added: 'Nord Stream 2 would divert supplies away from Ukraine, with significant consequences for its economy.'
Experts believe soaring energy prices could push average annual bills through the £2,000 barrier for the first time. As the gas crisis escalated, industry analysts suggested the current energy cap of £1,277 would rise by as much as £800.
Ofgem chief executive Jonathan Brearley, didn't put a figure on it, but said there will be a 'significant rise' in the price cap set by the industry regulator which helps to control the cost of gas and electricity in the UK. He didn't knock back claims that fixed and other deals could reach £2,000 in 2022.
'We can't predict everything, and the wholesale market, as we've seen, has gone up and down extremely quickly so we can't predict fully what that will be,' he told BBC Radio 4's Today programme. 'But, looking at the costs that are in the system, we are expecting a significant rise in April.'
But Mr Brearley added that the current price cap will remain until April. 'We have no plans to raise the price cap before April,' he said.
As Britain faced the prospect of soaring bills as the energy crisis continues to tighten its grip, it emerged -
Jake Sullivan, the US national security adviser, said the White House wants to work with Europe to ensure that energy supply keeps up with rising demand; 'Russia has a history of using energy as a tool of coercion, as a political weapon,' he said. 'Whether that's what's happening here now is something I will leave to others'; Baked beans became the latest victims of soaring inflation - with the head of manufacturer Kraft Heinz today revealing the cost of the breakfast staple will have to go up; The National Grid prompted fears of blackouts with a warning over electricity supplies this winter, and more energy firms were expected to collapse, with customers being switched to suppliers charging higher tariffs; It was claimed the UK would become more reliant on dirty coal to keep the lights on, just as it hosts a UN climate change conference; Experts warned that Britain faced an inflation shock that would squeeze family finances and could derail the economic recovery; One City analyst said inflation was heading to levels not seen for 30 years, while a think-tank warned of a big increase in council tax; The National Energy Action said up to 1.5 million more households could be plunged into fuel poverty if the energy cap soars; Boris Johnson faced a Cabinet backlash over his war with business, with five ministers telling the Daily Mail they wanted the PM to adopt a more 'pragmatic' approach; Industry chiefs said the switch to 'greener' petrol last month was a 'contributory factor' to the recent fuel crisis.
Vladimir Putin has been accused of holding Europe to ransom in a bid to win approval for his Nord Stream 2 pipeline. Boris Johnson has waded into the row and branded the proposed link from Russia to Germany a threat to security
Experts claimed Putin was using the crisis as leverage over the Nord Stream 2 pipeline project, which is run by Gazprom. Pictured: An output filtration facility of a gas treatment unit at the Slavyanskaya compressor station
The surge in wholesale gas prices has already forced many small suppliers in the UK out of business
Experts said the Russian president had substantial scope to boost gas supplies to the West – but he was using the issue as leverage in a bid to win approval for a new pipeline.
The surge in wholesale gas prices has already forced many small suppliers in the UK out of business.
Business Secretary Kwasi Kwarteng last night insisted there would be no bailout for failing firms, adding that the Government's plans to decarbonise the UK's power supply would protect customers in the long term.
Last night Ofgem appeared to open the door to a rethink on the way the cap works, with chief executive Jonathan Brearley saying: 'Although the gas price rise is unprecedented today, we will need to plan on the basis that shocks like this could happen again.'
The current energy bill price cap is set at £1,277 a year based on typical use, but industry analysts suggest it could rise by anything from £500 to £800 next April, based on the current market.
Mr Brearley has made clear that a dramatic surge in gas prices, which leapt 60 per cent at one stage this week, will push up bills when the cap is reviewed. Some energy firms have been pushing for the cap to be ditched entirely or raised much sooner.
Mr Brearley said: 'For millions of households the price cap has played its part in mitigating the consequences of the current gas price rises.
'But it is designed to reflect fair costs and therefore will need to adjust over time to reflect the changes in fuel costs that we are seeing today.
'It is hard to predict how long gas prices will stay high, but we do expect significant upward pressure on prices.'
Industry analyst Dr Craig Lowrey, of Cornwall Insight, said prices were likely to stay at a record high through to next winter and beyond.
The National Grid says the gap between energy supply and demand this year is likely to be at its lowest level for six years.
The organisation said it was confident blackouts can be avoided, but government energy adviser Tom Edwards said: 'If we have a very cold winter there is a chance of blackouts.
'We are reliant on imports from other countries and if the flows are not forthcoming then as a country we will have to take action to reduce demand.
'Some large industrial companies like car manufacturers may have to turn off.'
Exclusive research for the Daily Mail by the Centre for Economics and Business Research (CEBR) also yesterday revealed how inflation will cost the typical family of four an extra £1,800 by the end of this year. Meanwhile, a retired couple can expect to see living costs rise by more than £1,100, and a lower income couple could be stung by nearly £900
Analysis of price rises in the last year shows the cost of a second-hand car has risen more than £1,600, a tank of fuel is up more than £10 and the price of a pint of beer is creeping close to £4
Today, baked beans became the latest victims of soaring inflation - with the head of manufacturer Kraft Heinz today revealing the cost of the breakfast staple will have to go up.
A supply chain crisis and dramatically spiking energy prices are combining to threaten to push up the price of ordinary goods ranging from food and toilet rolls to bricks and chemicals.
'In previous years there was inflation in coffee because of a bad crop or a bad crop in beans - what is different now is that this inflation is across the board,' he told BBC Radio 4's Today programme.
'So it's impossible to navigate through this moment of inflation without increasing prices. It's up to us, and to the industry and to other companies to try to minimise these price increases.'
Major industrial groups say soaring prices are already forcing some heavy industries, such as steel, fertiliser and brick manufacturers, to scale back production and, potentially, shut down.
They are calling for government support of the kind that was given to banks during the 2008 financial crash.
Mr Kwarteng said last night: 'Protecting consumers from rising global gas prices is my top priority.'
