UK households could face a 50% jump in energy bills next year unless the government steps in, energy industry executives warned.
Wholesale gas prices hit a record 450p a therm this week following falls in European imports from Russia and analysts believe the high prices will continue into 2023.
The price surge could lead to a rise in the energy price cap for households by over 50% in April next year from current levels.
Philippe Commaret, managing director for customers at EDF, one of the UK’s largest suppliers, described the current situation as “critical”.
"We urge government to act now to support energy customers. The situation is critical this winter and unfortunately, this is only the beginning,” he said.
"The increase in the price cap in April could be as much as £700, and by next October, the cap could easily exceed £2,000 - that is, twice as much as the levels seen last winter."
Emma Pinchbeck, head of trade body Energy UK, said rising prices were starting to hurt the economy and called on the government to intervene.
"We've had record-breaking gas prices since September, and over the last couple of weeks prices have spiked again," she said. "They are at levels that, frankly, we have not seen before.
"It's looking pretty serious for the spring. Domestic energy bills are going to go up 45%-50%.
"We need action from the UK Treasury on this huge inflationary risk to business and economic security, and for all the ordinary people who will be facing a 50% increase in their bill."
Many European governments have reduced taxes and other levies, and similar action could save close to £200 a year on an average bill, she said.
"The price is now so high that this affects the whole of the economy. So does the Treasury need to do more? They have been reluctant to intervene so far in the bits that are within their control," she said.
A government spokesman told the Telegraph: "The energy price cap is insulating millions of customers from record increases in global gas prices and will remain in place, and at the same rate, this winter. We continue to support those most in need through our £500mln Household Support Fund, the Warm Home Discount and Winter Fuel Payments.”
Since August, 26 UK retail energy suppliers have folded because the energy price cap prevents them from passing higher costs on to their customers.
Energy suppliers that took on the customers of the collapsed suppliers will be able to claim back more than £1.8bn by adding it to the bills of households and businesses, putting further pressure on domestic bills.
Russia, a major producer of gas, has been accused of withholding supply to Europe in order to pressure German regulators into approving its new gas pipeline to Germany, the Telegraph reported.
The UK does not import much of its gas directly from Russia but does import from Europe which gets about 40% of its gas from Russia, and prices in the UK track those on the continent
The amount of gas sent from Russia to Europe fell by 21% from January to November, compared to two years ago, according to the Oxford Energy Institute.
So far in December, the amount supplied by Russian state giant Gazprom has fallen by 33% to 7.7bn cubic metres, compared to 2019, a Telegraph analysis of company figures showed.
Supplies are also 22.1% lower than over the same period in 2020, it said.
Jack Sharples, of the Oxford Energy Institute, said Gazprom had been filling Russian storage sites until early November.
But its decision not to send more gas since then suggests that Moscow is deliberately withholding greater volumes, he told the Telegraph.
"Whether they are doing that to put pressure on Europe, or simply because it is commercially advantageous to keep supplies constrained, is still not clear," he said.
Gazprom said it supplies gas in accordance with customers' requests in full compliance with current contractual obligations.